Sri Lanka has been further downgraded by Fitch Ratings, an international financial rating agency.

According to their latest rankings, Sri Lanka has downgraded CC to CCC.

They emphasize the declining foreign exchange reserves due to high foreign debt payments and limited cash inflows due to the deteriorating external liquidity situation in Sri Lanka and say there is a high probability of default in the coming months.

The report also said that the severity of the financial crisis was reflected in rising government bond yields and depreciating currency.