The bank operating environment (OE) of srilanka continues to show signs of stabilisation, Fitch Ratings said, as it is evident in sustained improvements in reported headline macroeconomic indicators, supporting the recovery in banks’ operational flexibility.
It noted that further improvement to the banks’ OE remains contingent on successful execution of the sovereign’s external debt-restructuring exercise alongside the restoration of the sovereign’s creditworthiness. This is given the strong link between sovereign financial health and banks’ operating conditions, the rating agency said in a commentary yesterday.
Fitch Ratings yesterday affirmed the ratings of five banks. While affirming Sri Lanka-based Sampath Bank PLC’s (Sampath) National Long-Term Rating at ‘A(lka)’, it affirmed Seylan Bank, DFCC Bank, Nations Trust Bank, and National Development Bank at ‘A-(lka)’. The outlook is stable for all the five banks.