Fitch Ratings has downgraded the rating on SriLankan Airlines Limited's US $175 million government-guaranteed 7 percent unsecured bonds due 25 June 2024 to 'CCC', from 'B-'.

The rating action follows the downgrade of Sri Lanka's Long-Term Foreign- and Local-Currency Issuer Default Ratings to 'CCC', from 'B-'.

The national carrier's bonds are rated at the same level as its parent, the state of Sri Lanka, due to the unconditional and irrevocable guarantee provided by the state.

The Sri Lankan government holds 99.5 percent of SriLankan Airlines through direct and indirect holdings.