Sri Lanka’s fiscal recovery threatened by cyclone damage : Moody’s

Sri Lanka’s post-default fiscal consolidation is likely to be hindered by increased spending to address damage caused by Cyclone Ditwah, Moody’s Ratings said in a recent statement. Moody’s said several tropical cyclones since mid-November, combined with unusually heavy monsoon rains, have caused severe flooding, landslides and the loss of hundreds of lives across South and Southeast Asia. Moody’s said the economic, fiscal and credit impact is likely to be most significant for Sri Lanka, which holds a Caa1 stable rating. “While we do not expect a reversal in the government’s commitment to the ongoing International Monetary Fund program and related…

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