Sri Lanka foreign reserves steady

Apr 04, 2011 (LBO) – Sri Lanka’s foreign reserves were flat at 6.7 billion US dollars in February 2011, helped by a 200 million dollar injection form the International Monetary Fund, though reserves measured in months of imports have fallen slightly. By February reserves measured in terms of imports had come down to 5.8 months of imports which had then risen to 1,167 dollars according to the latest Central Bank data.

The actual dollar volume was steady at around 6.6 to 67 billion US dollars since October 2010. In February the IMF gave another 200 million dollars to Sri Lanka.

The latest data also shows that the Central Bank had bought more than 100 million dollars from forex markets in March.

Sri Lanka is set to get another billion US dollars from the IMF until early 2012. The first repayment will kick from mid 2012.

Meanwhile there are also fears that Sri Lanka will have to pay around 400 million dollars on defaulted oil derivatives if the country loses legal action bought by several foreign banks.

Sri Lanka’s foreign reserves rose to October to 6.7 billion dollars from 5.7 billion in August helped by the sale of billion dollar Euro bond and a 200 million dollar injection from the International Monetary fund a month before.