Sri Lanka official reserves at USD7.9bn by end Oct; YTD rupee depreciation 12.9-pct

Nov 14, 2018 (LBO) – Supported by the receipt of the foreign currency term financing facility of 1 billion US dollars by the government, gross official reserves amounted to 7.9 billion US dollars as at end October 2018, providing an import cover of 4.2 months, the Central Bank said.

The bank added that the significant growth in imports, as well as recent capital outflows amidst the broad based strengthening of the US dollar, exerted pressure on the exchange rate.

“Although the pace of depreciation has moderated recently, the Sri Lankan rupee has depreciated by 12.9 percent against the US dollar during 2018 up to 13 November,” the Central Bank said.

“In the financial account, both the government securities market and the Colombo Stock Exchange experienced net outflows of foreign investment, particularly in the context of rising global interest rates and elevated political uncertainty.”