Sri Lanka forex reserves at US$7.2bn by Nov 14

ECONOMYNEXT – Sri Lanka’s forex reserves have fallen to 7.2 billion by the November 14 but more inflows are expected, Central Bank Governor Indrajit Coomaraswamy said.

The reserves had fallen partly due to a 500 million dollar payment under the Asian Clearing Union, he said.

Sri Lanka’s central bank said foreign reserves rose to 7.9 billion US dollars by end October from 7.164 billion dollars in September helped by a billion US dollar loan from China.

Sri Lanka is now defending the currency and printing money to fill liquidity shortages with a soft-peg with the US dollar under pressure, and capital outflows from bond and stock markets.

Coomaraswamy said Bank of Ceylon, People Bank and NSB is in talks to raise about 750 million dollars to 1.000 billion from Middle Eastern banks by the end of the year.

The central bank expected to end the year with 7.8 billion dollars of reserves, he said. (Colombo/Nov14/2018)

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