Fitch’s rationale for upgrading Sri Lanka’s outlook to positive

Fitch Ratings recently affirmed Sri Lanka’s Long-Term Issuer Default Ratings (IDRs) at ‘B+’ and revised the Outlooks on both ratings to Positive from Stable, largely to reflect the economic benefits of post-war transformation and IMF support. Both Outlooks were changed to Stable from Negative in October 2009 on account of the end of the 26-year civil war and the approval of a US$ 2.6 b IMF Stand-By Arrangement (SBA). Here are excerpts from Fitch’s rating full report: