Sri Lankan banks downgraded by Fitch Rating

Sri Lankan state bank, Bank of Ceylon is downgraded by Fitch international rating agency. Bank of Ceylon has been ranked at the CCC category so far and now according to the latest report it has been downgraded to the CC category.

If these ratings fall further, it is considered bankruptcy or shutting down. This will have a direct impact on imports.

Sri Lanka is heading for a financial default, the Fitch Ratings agency downgraded the Sri Lanka to ‘CC’, from ‘CCC’ due to the increased probability of a default event in coming months in light of Sri Lanka’s worsening external liquidity position.

Meanwhile, the Chinese company that is involved in the fertilizer dispute with Sri Lanka said it would complain to the international rating agencies against Sri Lankan state banks over the default of payment, a spokesman said.

The spokesman said the ship carrying 20,000 tons of organic fertilizer manufactured by Seawin Biotech does not contain harmful bacteria, according to the latest test report in Singapore.

The company says the company ‘Seawin Biotech’  is preparing to complain to the top three international credit rating agencies -Standards & Poor’s rating, Moody’s Investors Service and Fitch rating against the state banks of Sri Lanka.

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