Sri Lanka foreign reserves at US$2,030mn in November

Jan 07, 2008 (LBO) – Sri Lanka’s foreign reserves fell to 2,030 million US dollars in November 2008, from 2,374 million in October, which was enough to cover 1.7 months of imports, the Central Bank said. The gross reserves before the Asian Clearing Union (ACU) balance was 2,608 million US dollars which was enough to finance 2.2 months of imports, it said.

Sri Lanka’s central bank has been intervening in foreign exchange markets since mid-September 2008, when foreign buyers of government securities started to pull out of bond markets, triggering a balance of payments crisis.

In August Sri Lanka had 3,424.4 million dollars in foreign reserves.

From September Sri Lanka has spent 1,056.86 million US dollars in defending a soft dollar peg at 108.00 and later at 110.00 rupees.

The spot dollar closed at 113.75/85 rupees Thursday.