Sri Lanka’s August Dollar reserves revealed

September 8, 2022 at 2:23 PM

Sri Lanka’s Foreign Exchange reserves were down to 1,716 million US dollars in August 2022, the Central Bank of Sri Lanka (CBSL) reported.

According to CBSL data, the forex reserves had dropped in August from the 1,817 million US dollars reported in July 2022.

Sri Lanka’s gross forex reserves have tended to fluctuate between 1.9 to 1.8 billion since March 2022 after running out of previously collected reserves.

Most of the remaining gross reserves are from a swap line from the People’s Bank of China.

The Central Bank is still intervening in the market with borrowed reserves from deferred payments to India under the Asian Clearing Union, while it is also getting dollars from a forced sale requirement.

According to analysts, both actions prevent a free float.

Sri Lanka defaulted on external payments in April 2022 which has also halted some projects. (NewsWire)