Daily Tax Report: International

Sri Lanka Outlook Cut to Negative by S&P After Tax Cuts

Jan. 14, 2020, 9:21 AM

S&P Global Ratings cut Sri Lanka’s ratings-outlook to negative, saying new tax cuts undermine the country’s fiscal and debt sustainability.

The company, which lowered the grading from stable, affirmed the island nation’s B ratings, according to a statement Tuesday. That’s five steps below investment grade.

Read: Sri Lanka Tax Cuts to Help Spur Economy, Revenue

“The negative outlook reflects our view that Sri Lanka’s fiscal trajectory over the next two to three years could deviate from a fiscal consolidation path,” S&P said. “The sizable deficits will add to Sri Lanka’s already-large debt stock at a faster pace.”

S&P follows...

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