Building Up

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Sri Lankas foreign reserves took a 2.2 percent dip in February, slightly above a 5.7 percent drop in January 2004, according to latest data released by the Central Bank.
rnrn

Officialrnor Central Bank reserves slipped to US$ 2,277.5 mn, while total reserves, whichrnalso includes private holdings, rose 4.9 percent to US$ 3,374.2 mn.

rn

SrirnLanka has to boost reserves steadily by allowing the rupee to float, accordingrnto the agreement with the International Monetary Fund.

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

rn

External Financern rn rn

rn

rn

2004 rn * rn rn

rn

rn

2003 rn rn

rn

rn

% Change

rn

rn

rn rn rn

rn

rn

rn rn rn

rn

rn

rn rn rn

rn

rn

rn rn rn

rn

rn

End Feb. rn

rn

rn

End Dec.

rn

rn

rn

rn

External rn Assets rn rn

rn

rn

rn rn

rn

rn

rn rn

rn

rn

rn rn

rn

rn

rn rn rn

rn

rn

rn rn rn

rn

rn

rn

rn

rn

Total rn Reserves (a) rn rn

rn

rn

rn rn

rn

rn

US$ mn rn rn

rn

rn

rn rn

rn

rn

3,374.2

rn

rn

3,218.1

rn

rn

4.9rn

rn

rn

rn rn rn

rn

rn

rn rn rn

rn

rn

Rs.rn mn rn rn

rn

rn

rn rn rn

rn

rn

rn 333,977.5

rn

rn

rn 311,313.7

rn

rn

7.3

rn

rn

Gross rn Official Reserves rn rn rn

rn

rn

US$rn mn rn rn

rn

rn

rn rn rn

rn

rn

rn 2,277.5

rn

rn

rn 2,329.0

rn

rn

-2.2

rn

rn

rn rn

rn

rn

rn rn

rn

rn

Rs. mn rn rn

rn

rn

rn rn

rn

rn

225,429.8

rn

rn

225,304.3

rn

rn

0.1rn

rn

rn

rn

Inrn2004, the rupee remained strong, gaining 0.1 percent against a weak dollar thanrnoriginally envisaged under the IMFs PRGF programme.

rn

rn

Thernagreement has been in limbo since December, because the government was unable tornimplement key reforms, due to political instability.

rn

rn

Inrnthe last few months, fiscal targets have also showing signs of going awry, withrnthe government subsidising a range of goods, including petroleum, wheat flourrnand sugar, in the run up to the general election.

rn

rn

-LBOrnNewsdesk:rnLBOEmail@vanguardlanka.com

rnrn