Moody's may raise Sri Lanka's 'Ca' long-term foreign currency rating, the credit ratings agency said on Wednesday, following the government's bond-exchange offer aimed at completing the restructuring of international bonds.

Sri Lanka will issue new notes to holders of its defaulted dollar bonds, as the South Asian nation draws closer to completing the restructuring of its $43 billion of foreign debt.

Moody's has placed Sri Lanka's Ca long-term foreign currency rating on review for an upgrade, the credit ratings agency said on Wednesday, following the government's bond-exchange offer that aims to complete the restructuring of international bonds.