Srilanka, Aug. 24 -- Moody's Ratings has affirmed Sri Lanka's Caa1 foreign currency long-term issuer and senior unsecured ratings, while maintaining a stable outlook, citing continued weaknesses in debt affordability and a high government debt burden despite progress in restoring macroeconomic stability following the 2022 economic crisis.



Moody's said fiscal reforms implemented under Sri Lanka's International Monetary Fund (IMF) program have improved government revenue collection and helped sustain primary budget surpluses.



However, the ratings agency noted that high interest costs continue to place significant pressure on government finances, absorbing more than 40% of government revenue.



Government debt is projected to reac...