Ravi K draws more strength from Fitch’s positive revision

• Says fundamentals in place for rapid growth with Fitch revising outlook to stable from negative
• Points to improved financial and fiscal discipline stabilising the economy 
• Justifies reasons for Fitch downgrading last year, claims Rajapaksa regime responsible for adverse economic management 
• Acknowledges room for improvement in the economy

By Charumini de Silva

A confident Finance Minister Ravi Karunanayake yesterday sounded determined to lead the country’s economy towards greater heights, insisting that the fundamentals are in place for rapid growth in the new global environment.  

“We have brought the economy to a stable position where there is financial and fiscal discipline. As promised by the coalition Government, we have delivered what we told. We have walked the talk,” he told the Daily FT in response to the recent positive move by Fitch Ratings.

Fitch Ratings on Thursday affirmed Sri Lanka’s long-term foreign and local currency issuer default ratings (IDR) at ‘B+’ and revised the outlook to stable from negative, noting that the fiscal performance was better and growth prospects were favourable.

Last year when the rating agency downgraded Sri Lanka’s sovereign credit rating to ‘B+’ from ‘BB-’ and assigned it a negative outlook, the Minister maintained that he was not overly worried about it.

However, justifying the reasons for the previous downgrade, he stated: “It was due to the backlash of the Rajapaksa regime. They handed over an unpinned grenade to us where we have disposed of that grenade and are now pushing the economy forward.”   

He also commended the rating agency for recognising and rectifying the adverse impact created in the economy by the Rajapaksa regime.

Despite the global economic turmoil experienced last year, the Minister asserted that Sri Lanka had progressed substantially.

Karunanayake emphasised that it was important to further improve the rating where it would be noticeable for a better outlook in the future. 

“Today the fundamentals are in place for rapid economic growth. I can’t think of any other economy which is in a sound position as Sri Lanka to take off at this moment. It is time that we all put in efforts to spearhead the economy to a stronger, stable position,” he added.