Srilanka, April 18 -- Increases in US tariffs will weigh on the credit metrics of many sovereigns in the Asia-Pacific (APAC) and risks will rise if higher country-specific tariffs are eventually implemented, says Fitch Ratings. Sri Lanka too will be among the affected states when country-specific tariffs are eventually implemented. Foreign-exchange reserves could shrink if authorities intervene to support their currencies in the face of market pressure to depreciate following the tariff increases. This could be credit negative for sovereigns with relatively low external buffers, such as Bangladesh (B+/Stable), Sri Lanka (CCC+) and Vietnam, particularly if their export earnings are hurt by the tariffs, the report said.
Fitch affirms/ upgrad...