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Foreign reserves hit USD 6.9 billion as remittance inflows hold strong

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By Sanath Nanayakkare

Sri Lanka’s external financial position is showing continued resilience, with official foreign reserve assets provisionally estimated to have reached USD 6.905 billion by the end of August 2026. This latest data marks an increase of approximately USD 305 million compared to the USD 6.6 billion recorded in July, reflecting ongoing efforts by the Central Bank of Sri Lanka to actively rebuild and strengthen the country’s external buffers. As noted by the Central Bank, this gross official reserve figure also incorporates the proceeds from the existing currency swap arrangement with the People’s Bank of China.

A critical component supporting this steady accumulation of foreign exchange is the sustained financial contribution of Sri Lankans employed overseas. In August 2026, workers’ remittances amounted to a robust USD 748.6 million. While this reflects a slight dip from the USD 777.6 million received in July, it remains substantially higher than the USD 680.8 million recorded during the same month in the previous year. This consistent influx of foreign currency continues to play a vital role in providing a meaningful buffer for the nation’s import cover while assisting authorities in the management of external debt obligations.

Despite these highly encouraging developments in reserve accumulation, the domestic currency has had to navigate ongoing market pressures. Recent data indicates that the Sri Lankan rupee depreciated by 5.7% against the US dollar on a year-to-date basis as of September 11, 2026. Nevertheless, independent analysts and economists largely view the steady reserve position as a deeply positive signal that the broader economic stabilisation programme is yielding tangible results.

However, addressing a Reserve Management Symposium in Colombo last week, Central Bank Governor Dr, Nandalal Weerasinghe said: “Heightened geopolitical fragmentation, high oil prices, sanctions, trade tensions, and unpredictable capital flows could complicate domestic reserve management.



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White House blocks Microsoft from foreign worker hiring programme

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The White House has often made extreme claims regarding international workers and immigration

Microsoft and several other technology firms have been barred by the White House from hiring skilled international workers on a permanent basis through a widely used visa programme.

US Vice-President JD Vance on Thursday accused Microsoft alongside other firms of committing fraud through the use of the H-1B visa programme and a related process for workers from abroad to become permanent US residents.

Vance claimed that Microsoft, one of the most valuable companies in the US, has been effectively replacing American workers with “foreign indentured servants.”

Microsoft said most of the H-1B visas filed over the last financial year were for existing workers, who are paid the same as local staff.

“No company in the US has abused this system more than Microsoft,” Vance said.

He also made similar accusations about Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

The US government will not process any new or pending Permanent Labor Certification Program (PERM) applications from Microsoft or the seven other companies, Secretary of Labor Keith Sonderling said during the same conference.

Sonderling said companies like Microsoft, as well as US universities, have turned into “visa mills” that were “flooding” the US with foreign workers.

The BBC has contacted all of the companies for comment.

The total number of H-1B visas, a precursor to anyone seeking to go through the PERM process, is capped at 85,000 per year.

A spokeswoman for Microsoft noted to the BBC that “the vast majority of Microsoft employees in the United States are Americans.” The company employs more than 200,000 people worldwide.

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ComBank unites stakeholders to prepare agri sector for El Niño

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El Nino awareness programmes conducted by the Bank

In response to emerging climate risks, the Commercial Bank of Ceylon has launched a proactive initiative through its Development Credit Department, to equip Sri Lanka’s agricultural sector against the potential impacts of the 2026 El Niño climate pattern.

Seeking to move the industry from reactive loss management to early climate preparedness, the Bank partnered with leading state universities to execute a two-part educational and technological intervention in September 2026.

The initiative comes at a critical juncture. Sri Lanka’s Department of Meteorology reported an 80% probability of El Niño conditions emerging between June and August 2026, with effects expected to persist through November and beyond. As highlighted by the Food and Agriculture Organization (FAO), El Niño acts as a risk multiplier for rural livelihoods, food production, and water supply.

To mitigate these threats, the Bank’s initiative creates a collaborative network uniting academic institutions, agricultural extension services, technology providers, farming communities, and the financial sector. The awareness programme on El-Niño and its impact on agriculture was supported by 12 Commercial Bank branches, and engaged with more than 1,100 farmers at 15 diverse locations, including Vattapalai, Muththajankaddu, Palampas, Oddusuddan, Siyambalanduwa, Lindula, Neluwa, Kalawana, Pannala, Madampe, Mannar, Vavuniya and Kumalamunai.

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SLIC Life marks World Children’s Day with Rs. 1M free cover for newborns

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Senior Management of SLIC Life and officials of Castle Street Hospital for Women symbolically hand over a Free Life Cover of Rs. 1 million to a parent whose child was born on 1st of October 2026

In celebration of World Children’s Day 2026, Sri Lanka Insurance Life (SLIC Life) is providing a free Rs. 1 million life insurance cover to the parents of every child born across Sri Lanka on October 1, 2026. Implemented island-wide across hospitals, this initiative marks the fifth consecutive year of the program, which was first launched in 2022 under SLIC Life’s Corporate Social Responsibility (CSR) umbrella.

The initiative aims to offer financial protection while raising awareness about the vital importance of long-term financial planning right from a child’s birth. SLIC Life CEO Dr. Sameera Dharmasena emphasized that protection should begin at the start of a family’s journey, highlighting the company’s ongoing commitment to safeguarding families against life’s uncertainties and contributing to a secure future for the next generation.

Alongside this program, SLIC Life continues to support child welfare and education through other long-standing CSR initiatives:

Pasal Piriyatha Surakimu (since 2007 has upgraded infrastructure and facilities for over 3,365 underprivileged schools, with its 2026 edition scheduled for November.

Suba Pathum Scholarship Programme (since 2014): Has awarded 2,425 scholarships worth Rs. 265 million to high-achieving children of policyholders.

Through these combined efforts, SLIC Life underscores its dedication to building stronger, more resilient families and communities across the country.

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