Sharp increase in Gross Official Reserves

The Gross Official Reserves of Sri Lanka have been estimated to reach USD 2,180 million as at July 31, 2009, an increase of 71 percent from the foreign reserve levels of USD 1,272 million as reported on March 31, a media release from the Central Bank said. The increase in the reserves to the current level had been mainly due to the receipt of the first tranche of the IMF Standby Facility and the significant absorption of foreign exchange from the domestic market during the past four months. On this basis, the current level of estimated reserve is well-above the level expected by the end of next month under the Standby arrangement with the IMF.

The Central Bank also expects foreign reserves to increase further in the coming months with continued receipts of foreign exchange from foreign investors and the Sri Lanka diaspora, particularly due to the enhanced confidence based on the improved political stability, and the widening investment opportunities in the country, the release said.