Two of the world's largest credit rating agencies have warned that Sri Lanka is about to default on its debts.
The rating agency lowered its assessment of the South Asian nation.
S&P Global Ratings said that a default is now virtual certainty.
Sri Lanka said this week that it will temporarily default on its foreign debts as it faces its worst economic crisis in 70 years.
The officials have urged Sri Lankans working abroad to send money home because of the protests over power cuts and the high cost of food and fuel.
Sri Lanka is due to make interest payments on its international bonds on Monday.
If the payment is not made within a month, it will be the first default on foreign debt since independence from the UK in 1948.
According to the latest rating from the company, Sri Lanka is near default and its payment capacity is irrevocably impaired.
The firm said in a statement on Wednesday that it will lower the rating once a payment is missed and the grace period has expired.
The virtual certainty of a default on some affected obligations is what prompted S&P to upgrade Sri Lanka.
The ratings agency was waiting for more information on the debt restructuring plan or confirmation that the government had failed to pay its debts.
S&P said in a note that they expect the government to miss paying coupons. There is an interest payment on a bond.
Credit ratings are used to help investors understand the level of risk when buying a financial instrument.
On Tuesday, the Sri Lankan government said it was going to default on its foreign debt.
The finance ministry said it was impossible to pay its debts because of the war in Ukraine.
The country is going to start talks with the International Monetary Fund next week on a loan programme to get its economy back on track.
Ahead of talks with the International Monetary Fund, it dramatically devalued its currency.
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