Sri Lanka, July 31 -- S&P Global Ratings' decision early this week to affirm Sri Lanka's long-term and short-term foreign and local currency sovereign credit ratings at CCC+/C, with a stable outlook, is undoubtedly a positive development. The agency cited the country's resilience despite significant external challenges, reflecting the progress made since the economic collapse and sovereign default in 2022.

The Government deserves recognition for several important achievements. Fiscal discipline has improved, inflation has been brought under control, foreign exchange reserves have strengthened, and, importantly, the country's domestic revenue collection has improved significantly. Strengthening internal income through better tax administr...