A steady flow of foreign currency is strengthening the country’s external position.
Fresh data released by the Central Bank of Sri Lanka (CBSL) shows strong inflows from two key sources: foreign exchange purchases and workers’ remittances. Together, they are helping rebuild Sri Lanka’s reserves, pushing them beyond an important milestone.
In February 2026, the central bank purchased USD 461 million from the domestic foreign exchange market. Notably, CBSL did not sell any US dollars during the month, signalling a continued strategy to accumulate reserves and strengthen the country’s external buffers.
The February purchase follows activity earlier in the year.
In January 2026, the central bank bought USD 209.8 million from the domestic forex market while selling USD 9.5 million, resulting in a net purchase of USD 200.3 million for the month.
With these transactions combined, the central bank has net purchased USD 661.3 million during the first two months of 2026.
The impact of these inflows is already visible in the country’s official reserve figures.
By the end of February 2026, official reserve assets increased to USD 7.28 billion. This marks an important turning point for the economy.
It is also the first time since August 2020 that the country’s foreign reserves have crossed the USD 7 billion level.
At the same time, another major source of foreign currency continues to show strong growth.
Update on Remittances
CBSL reported that workers’ remittances reached USD 729 million in February 2026. This represents a sharp increase compared to USD 548.1 million recorded in February 2025, highlighting the continued contribution of migrant workers to the economy.
However, the February figure showed a slight decline from January 2026, when remittances reached USD 751.1 million.
Despite that monthly dip, the overall trend remains positive.
During the first two months of 2026, total remittances sent by migrant workers amounted to USD 1.48 billion, representing a 32 percent increase compared to the same period last year.
For policymakers and markets alike, the message is becoming clearer.
Rising remittances and steady foreign exchange purchases are gradually rebuilding Sri Lanka’s reserves, strengthening the country’s financial position and external stability.
Central Bank of Sri Lanka (CBSL) Weekly Economic Indicators
Last modified: March 9, 2026
