Sri Lanka’s central bank buys New York property

Nov 09, 2011 (LBO) – Sri Lanka’s central bank has bought property in New York as part of a move to establish overseas offices where the foreign reserves are invested, Governor Nivard Cabraal said. “We have bought office space, we will be having some our operations in other countries,” he said.

“Initially we will give it to (diplomatic) missions.”

The property is near New York’s United Nations building. Cabraal said property prices were also down at the moment.

He said the Central Bank has billions of dollars in foreign reserves and research and investment offices would be needed in the future.

Sri Lanka has a peg with the US dollar, and a bulk of the country’s foreign reserves has to be held in dollar assets, usually liquid US government bonds. Investments denominated in other currencies can result in exchange losses.