Sri Lanka foreign reserves down by USD74mn in April

May 08, 2017 (LBO) – Sri Lanka’s official foreign reserves further dropped by 74 million US dollars to 5.04 billion dollars in April, official Central Bank data showed.

Foreign currency reserves were 4.07 billion US dollars and reserves in Gold were 0.91 billion US dollars.

Central Bank’s Treasury bill holdings were up from 233.32 billion rupees in March to 295.34 billion rupees in April.

During the year up to 05 May 2017 the Sri Lanka rupee has depreciated against the US dollar by 1.5 percent.

The Sri Lanka rupee has further depreciated against the pound sterling by 6.3 percent, euro by 5.4 percent, Japanese yen by 4.7 percent and Indian rupee by 6.9 percent during this period.

The IMF staff mission last week commended the authorities for resuming accumulating net international reserves as a corrective action for missing the end-2016 target.

The mission further stated that this reserve accumulation should continue and help reduce Sri Lanka’s external vulnerability.

“The authorities are making progress with their economic reform program, particularly on improving the fiscal position,” the IMF said.

“Maintaining the reform momentum in an uncertain external environment will be important for addressing fiscal and external imbalances.”

Meanwhile, the Central Bank on behalf of the government successfully priced a 1.5 billion dollar 10-year international sovereign bond on Thursday marking Sri Lanka’s eleventh US dollar benchmark offering in the international bond markets since 2007.

Related: Sri Lanka foreign reserves fall to 7-year low in March