Moody's evaluation on the LKR fall

Colombo (News 1st) - Moody’s Investors Service has placed Sri Lanka among the countries in the world with the largest fall in value of their currencies against the US dollar in 2018, and stressed that the implementation of reforms that address both fiscal and external imbalances will remain key to supporting the sovereign credit profile of the country. Moody’s has a ‘B1’, a speculative grade rating on Sri Lanka, with a ‘Negative’ outlook due to the country’s high government debt, very low debt affordability and fragile external payment position. Sri Lanka was ranked twelfth out of fifteen sovereigns with the largest year-to-date currency depreciation. Year-to-date the Sri Lankan rupee has depreciated by about 13.5% and at Rs.174.45/60 per dollar on Monday compared with the previous close of Rs.174.30/50. Argentine peso is the worst-hit currency to-date with its value falling by close to 50 percent. Meanwhile, in South Asia, Pakistan was the worst-hit with its rupee falling in value by 15 percent year-to-date. Indian rupee ranks next to the Sri Lankan rupee with about a 14 percent fall in its value against the dollar.