Sri Lanka poll looms amid credit jitters

摘要

Analysts expect Sri Lanka's parliamentary election this week to provide some clarity on the lingering default risks hanging over the sovereign's offshore debt. The election was originally planned for April but was delayed by a nationwide lockdown to contain the coronavirus outbreak. The government has been operating under a "vote on account", or interim budget, for most of the year in the absence of a full-year budget. "After the election and government formation, we expect a greater degree of policy clarity in targeting some near-term economic and fiscal challenges," said Moody's analyst Michael Higgins.