SL foreign reserves up 7.9%
Sri Lanka’s gross foreign reserves rose 474 million US dollars in the month of October to 6.4 billon dollars, the central bank data showed.
Sri Lanka’s gross foreign reserves are made up of central bank’s monetary reserves and fiscal reserves from loans.
Sri Lanka signed a 200 million dollar World Bank loan in October, it is not clear whether the it was disbursed.
Sri Lankas’ central bank has operated deflationary policy for over two years, leading to balance of payments surpluses.
The agency has also allowed the rupee to appreciate, amid an IMF program allowing some of the inflation created during the crisis to reverse.
Central bank’s net reserves which were negative by 4.6 billion dollars at the height of the last currency crises has now come to near to zero by September.
The central bank has repaid both International Monetary Fund and Reserve Bank of India loans.
