Sri Lanka foreign reserves at US$8.05bn in August: data

Dilshan Wirasekara, Chief Executive Officer of First Capital Treasuries PLC

Oct 10, 2011 (LBO) – Sri Lanka’s gross foreign reserves were 8,050 million US dollars by the end of August 2011, only slightly lower than the 8,098.8 million US dollars reported in July, Central Bank data showed. In August the central bank had sold 197.6 million US dollars in foreign exchange markets to commercial banks to maintain a peg with the US dollar at around 110 rupees.

No purchases had been made.

August interventions were lower than July’s 416 million US dollars. But analysts say in September sales had picked up again.

Central Bank officials have said the interventions are temporary though analysts have warned that conflicting exchange rate and interest rate policy was pressuring the peg.

End-August reserves were equal to 5.4 months of imports, only slightly lower than the 5.8 month level in July.