Sri Lanka’s foreign exchange reserves were expected to hit a post-crisis high by the end of the year, driven by strong inflows from multilateral agencies, Central Bank Governor Nandalal Weerasinghe said yesterday (26).
The country is anticipating USD 370 million in budget support from the Asian Development Bank and over USD 340 million from the International Monetary Fund, both expected to arrive in December. “Those will come in December. As a result, there will be a significant increase in reserves,” Governor Dr. Weerasinghe told eporters.
So far in 2025, forex reserves have seen limited growth due to delays in loan approvals and higher-than-usual foreign currency debt repayments during the first 11 months. In addition to external debt, the government also cleared loans of state enterprises, such as the Ceylon Petroleum Corporation with state banks, the Governor added.
Sri Lanka’s forex reserves have remained below USD 6.5 billion since around October 2024 following rate cuts. Despite this, the Central Bank has managed to bolster net reserves by collecting foreign currency and settling reserve-related debts to India and the IMF.
by Shyam Nuwan Ganewatte