Sri Lanka’s Gross official reserves increased notably to US dollars 5.5 billion by the end of April 2024, according to the Central Bank of Sri Lanka (CBSL).
The figures recorded at the end of April were an increase from the US$ 5 billion recorded by the end of March 2024.
The CBSL states the increase in April was supported by considerable net purchases by the Central Bank from the domestic foreign exchange market amidst increased foreign currency inflows.
Sri Lanka’s Gross official reserves included the swap facility from the People’s Bank of China equivalent to around US$ 1.5 billion, which is subject to conditionalities on usability.
Meanwhile, the Sri Lanka rupee recorded an overall appreciation of around 8.0 per cent against the US dollar thus far in 2024.
As domestic economic activity gathered momentum in recent months, the cumulative merchandise trade deficit is expected to have widened during the four months ending April 2024 compared to the same period in 2023.
Buttressed by tourism-related inflows, the services sector also recorded a notable net inflow in recent months, while workers’ remittances remained elevated. (Newswire)
