Sri Lanka’s Official Reserves Surge to USD 6.46 Billion in October – CBSL

The Central Bank of Sri Lanka (CBSL) reports that Sri Lanka’s official reserve assets rose sharply to USD 6.46 billion in October 2024, marking a 7.9% increase from USD 5.99 billion in September. This boost in reserves underscores a positive trend in the country’s financial stability, driven by increases in both foreign currency and gold reserves.

Key Highlights

• Foreign Currency Reserves Growth: The foreign currency reserves, the main component of Sri Lanka’s official assets, rose by 7.3%, reaching USD 6.38 billion in October from USD 5.94 billion in September.
• Gold Reserves Increase: Sri Lanka’s gold reserves grew by 5.8%, increasing from USD 40 million in September to USD 42 million in October, adding another layer to the country’s asset base.
• Impact of Chinese Swap Proceeds: This reserve increase includes around USD 1.4 billion from a currency swap with the People’s Bank of China (PBoC). However, these funds come with specific conditions on their usability, which may influence their accessibility.

Conclusion
Sri Lanka’s rising reserves reflect an important step toward financial resilience, bolstered by both currency and gold reserves. As the nation leverages international financial collaborations, the CBSL’s strategic management of reserves could play a pivotal role in strengthening economic stability.

Central Bank of Sri Lanka (CBSL)

Last modified: November 12, 2024