Andrew Colquhoun, senior director and head of Asia Pacific sovereign ratings said a global recovery was still patchy, with the outlook for US stronger but, Europe and China slowing leading to a downward revision in overall global growth.
"One country that has bucked the trend is Sri Lanka - Fitch still expects the economy to grow about 6.5 percent this year,"
"But the question is - how to fund growth? Sri Lanka's domestic savings aren't high enough to fund its investment needs, so there is a demand for foreign capital.
"Our concern from a credit perspective is that the capital is coming more in the form of debt than of FDI.
"Rising external debt could be vulnerability for Sri Lanka in a world that is warming up to the prospect of a 'Fed exit' and more expensive funding generally.
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Fitch Ratings is holding its first sovereign and banking round table in Colombo tomorrow with the country's top financial market participants. Central Bank Governor Nivard Cabraal will be chief guest