Sri Lanka foreign reserves up in April

ComBank MD S. Renganathan (Centre) introducing the app to CB Governor Indrajit Coomaraswamy in the presence of (from L) ComBank Manager - Card Centre Seevali Wickramasinghe, Head of Card Centre Thusitha Suraweera, Deputy GM – Marketing Hasrath Munasinghe, CB Assistant Governor Ananda Jayalath and CB Director - Payments & Settlements Dharmasri Kumaratunge

June 24, 2013 (LBO) – Sri Lanka’s foreign reserves rose 168 million US dollars to 6,858 million US dollars in April 2013 from 6,689.50 million US dollars in March, Central Bank data showed. The central bank said gross official reserves were equal to 4.4 months of imports.

In April a state-run bank raised money abroad and the Central Bank which saw its Treasury bill stock also spike, started to cut it with outright sales in the second half of the month. Selling down the domestic asset portfolio of the bank, allows foreign reserves to rise.

Official foreign reserves in Sri Lanka are made up of the Central Bank’s monetary reserves as well as fiscal reserves.

Reserves can also change due to valuation effects including cross currency movements or the price of gold. .