Sri Lanka forex reserves rise in October with China loan

ECONOMYNEXT – Sri Lanka’s forex reserves rose 736 million US dollars to 7,900 million US dollars in October 2018 from a month earlier, helped by a loan from China, official data shows.

In September forex reserves fell 1.4 billion US dollars to 7,180 million US dollars.

In October Sri Lanka received the proceeds of a billion US dollar loan from China, boosting forex reserves.

Interventions have also continued in forex markets, with sales of stocks and bond by foreign investors amid a political crisis.

The pressure on the rupee began before the current political crisis.

Sri Lanka is now sterilizing forex sales or printing money to fill liquidity shortages coming from dollar sales and maintain the monetary base.

The central bank said its Treasury bill stock acquired outright and through reverse repo deals, had risen to 224.4 billion rupees by November 02. (Colombo/Nov11/2018)

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