Sri Lanka outperforms IMF reserve targets: Central Bank

Aug 04, 2009 (LBO) – Sri Lanka’s gross reserves have risen 71 percent to 2.1 billion US dollars by end-July from 1,272 million US dollars in March, which is higher than expected under an International Monetary Fund program, the Central Bank said. The central bank said it expected foreign reserves to increase due to inflows from foreign investors and the Sri Lanka diaspora, “due to enhanced confidence based on the improved political stability” and “widening investment opportunities.” It was also helped by a 300 million dollar first tranche injection from the IMF, the Central Bank said.

“On this basis, the current level of estimated reserves is well-above the level expected by end September 2009 under the Standby arrangement with the IMF,” the Central Bank said in a statement.