Rating agency Fitch has said that Sri Lanka is showing strength in economic growth, however Foreign Direct Investment (FDI) remains modest compared with rated peers, leading to rising external indebtedness.
A statement by Fitch Ratings said that this could be a source of vulnerability as central banks in major economies tighten global funding conditions.
The agency released a report on Tuesday, which says mobilising more domestic savings could help fund growth without increasing reliance on foreign capital.
See report here (subscription).