COLOMBO, Nov. 22 (Xinhua) -- Sri Lanka's central bank has strongly objected to a statement made by Fitch ratings, which has warned of policy uncertainty after the presidential election, saying such claims were contradictory to the positive market response after the victory of Gotabaya Rajapaksa, local media reported Friday.
"The contents of the statement issued by Fitch ratings, which are purely based on loose assumptions, cannot be endorsed, particularly as they are very much at variance with actual market developments and expectations," the Central Bank said in a statement.
A statement issued by Fitch ratings Thursday said President Gotabaya Rajapaksa's commitment to expand social spending and public-sector wages and pensions could jeopardise deficit reduction. Fitch also claimed that Rajapaksa's plans to increase growth could entail fiscal expansion and complicate relations with the IMF.
"As the government is still being formed, the Central Bank is of the opinion that it is premature for any analyst to express a view on the precise policy path of the new government and its potential outcome," the central bank said.
Rajapaksa won the Nov. 16 presidential election with 53 percent of total votes that saw a 83-percent turnout.
