Central Bank to buy gold amidst falling prices

Central Bank Governor Ajith Nivard Cabraal in an interview with Bloomberg Television said, Sri Lanka will favorably examine buying more gold since declining prices would be an opportunity for various nations to raise gold reserves as well as Central Banks across the world to improve on their holdings.

"An opportunity that provides us with space to purchase a little more quantities and hold in our own reserves would be an interesting one," Cabraal said.

According to World Gold Council data, Sri Lanka owns 3.6 tons of gold. The biggest drop in gold prices since 1983 has divided central banks on whether the metal is cheap enough to increase investment. Central banks own about 19 percent of all gold ever mined, and last year boosted their holdings by the most since 1964, according to the London-based World Gold Council.

The metal, which rallied for the past 12 years in the longest gain in at least nine decades, has lost 28 percent since climbing to a record $1,921.15 an ounce in September 2011.

(IH)