Sri Lanka aims for US10bn forex reserves by 2013

Jan 05, 2011 (LBO) – Sri Lanka is improving its foreign reserves management system with more modern trading systems and practices and aims to build up foreign exchange reserves to over 10 billion US dollars in the next few years, central bank governor Nivard Cabraal said. The central bank plans to go for better trading systems and multiple-shift working arrangements. “Gross official reserves are projected to increase to around 10 billion dollars by 2013,” he said in a speech on monetary policy for 2011.

Forex reserves hit a record 6.6 billion dollars in 2010 bolstered by inflows from lending agencies, foreign direct invstments, remittances and increased export earnings.

“Foreign reserves in the medium term are targeted to be maintained at around 5 to 6 months import equivalent level,” Cabraal said.

“We need a better treasury management system and we are ready to contract for it,” Cabraal also said.