Sri Lanka, Sept. 29 -- The Ministry of Finance, in response to Moody's Investors Service downgrading Sri Lanka's Sovereign rating on Monday (28), has stressed that the rating action is unwarranted.

The downgrade and the report, published by an international investment bank raising concerns about Sri Lanka's economic and financial strength and external debt service capacity, have failed to do justice to the ground reality of the ongoing rapid economic recovery backed by vastly improved business confidence arising from the return of political and policy stability after a lapse of five years, the Finance Ministry stated.

The statement urges foreign investors not to be dissuaded by the recent "unwarranted rating downgrade" and the "erroneou...