On December 23, 2024, Moody's Ratings announced an upgrade of Sri Lanka's credit rating from Ca to Caa1. This decision follows the nation's recent completion of debt restructuring for its dollar bonds, which has decreased the likelihood of default on future obligations.
Despite the upgrade, Moody's still categorizes governments with a Caa1 rating as very high risk. However, this marks a significant improvement for Sri Lanka, representing the second upgrade the country has received in December 2024.