Sri Lanka’s foreign reserves upsurge to USD7.5bn in April, CB predicts further growth

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June 2, 2015 (LBO) – Sri Lanka’s gross foreign reserves rose to 7.5 billion US dollars in April 2015 from 6.8 billion US dollars in March, due to a 400 million US dollar currency swap from the Reserve Bank of India, Central Bank said.

The regulator says the reserves likely to increase further helped by the inflows from issued international sovereign bond and Sri Lanka Development bonds, with balance of currency swap from India.

“With the proceeds of the international sovereign bond, SLDBs and the expected proceeds of the balance portion of US dollars 1.1 billion from the currency swap agreement between Sri Lanka and India together with other regular investment inflows, gross official reserves are expected to increase further during the next few months.” Central Bank said.

In a recent press briefing, Finance Minister Ravi Karunanayake said, that the Indian Ocean Island targets a 9 billion dollars of foreign reserves in end 2015.

According to Central Bank, the international reserves of the Island as at end March 2015 are estimated to be US dollars 6.8 billion, equivalent to 4.2 months of imports while total foreign assets amounted to US dollars 8.6 billion, equivalent to 5.3 months of imports.

During the first quarter of 2015, the overall BOP is estimated to have recorded a deficit of US dollars 1,016.8 million, compared to a surplus of US dollars 828.3 million recorded during the corresponding period of 2014.