INSUBCONTINENT EXCLUSIVE:
Fitch Ratings says that the increased US tariffs will weigh on the credit metrics of numerous sovereigns in the Asia-Pacific, with Sri Lanka
likely to be among the afflicted states when country-specific tariffs are eventually implemented.The agency thinks Asian economic
development will slow as exports and export-oriented financial investment are hit by tariffs and high uncertainty.Fitch likewise explained
that regional governments policy actions to the trade war will be crucial to its impact on APAC sovereign ratings.According to the ranking
firm Foreign-exchange reserves might shrink if authorities step in to support their currencies in the face of market pressure to diminish
following the tariff increases.This might be credit unfavorable for sovereigns with relatively low external buffers, such as Bangladesh, Sri
Lanka and Vietnam, especially if their export revenues are hurt by the tariffs.
