Business
A significant amount of reserves in foreign exchange is the way to go: CB Governor
By Sanath Nanayakkare
Sri Lanka needs to build its foreign reserves to an optimal level to prevent itself from seeking an IMF bailout for the 18th time, Central Bank Governor Dr. Nandalal Weerasinghe said at a forum held at the Central Bank recently.
The Governor said so responding to a query as to what Sri Lanka should do prevent the country from being compelled to go to the IMF for the 18th time seeking a bailout.
“I think that the 17th time (the current programme) needs to be the last time Sri Lanka is seeking an IMF EFF programme because seeking an IMF bailout next time would mean that we are facing an even more serious situation. We must act responsibly for such a situation to not arise mainly out of a debt crisis. This time we had to go to the IMF with debt unsustainability and we are still trying to achieve some semblance of debt repayment capacity with great difficulty.
We need to follow the current programme not only to achieve debt sustainability but also to achieve economic credibility and maintain predictability on a consistent basis until we come to a higher point of recovery. We need to increase our foreign reserve buffers and bring government revenue to an optimal level. Once that is achieved and our budget deficit and the current account deficit decline to the envisaged level, we will be resilient enough to face a possible external shock,” he said.
“What happened in 2022 was when we lost all of our foreign reserve buffers, there was no place else to go other than a crisis. If we had commenced the process of debt restructuring when we had foreign reserves of about USD 5-6 billion, we could have got the debt restructuring programme going without putting economic pressure on the general public. Thus we could have risen above it without plunging into an economic crisis. In the 16 previous IMF programmes where the country managed to get the better of the precarious situations, the people didn’t feel it.
We used our foreign reserves to make the necessary payments on the balance of payments front and topped it up as we went along without going into a crisis. But when we had used up all our reserves, there was no option other than to fall into a crisis. Foreign reserves are helpful for countries to face external shocks. Even when Covid-09 pandemic engulfed the world economy in an unprecedented way the countries with enough reserves dealt with it successfully and only a few countries like Argentina, Lebanon and Sri Lanka had to suffer the stresses caused by it.
Those countries that used their reserves during the crisis are in the process of rebuilding it again to face any possible external shock in the future. Sri Lanka should also follow this good fiscal practice and build its foreign reserves to avoid another crisis and remain stable in the face of any external shocks,” the Governor said.
The economic and political crisis in Sri Lanka, which began in April 2022, played out on TV screens around the world. Protests swept the country, forcing the President to step down.
The country defaulted on its debt payments in May 2022 and currently owes creditors about $51 billion. Inflation was running at almost 70% in 2022, caused by inability to pay for fuel, food and medicine imports. Foreign currency reserves were estimated to have dwindled to around $20 million from $7.6bn in 2019.
The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in association with the Embassy of Sri Lanka to the Kingdom of Saudi Arabia, successfully convened an investor forum on Saturday 24th January 2026 at the Radisson Blu Hotel, Riyadh Convention & Exhibition Center. Alongside the forum, the SEC and CSE facilitated a meeting with the Public Investment Fund (PIF) which is Saudi Arabia’s main sovereign wealth fund.
The forum was organized to engage directly with the vibrant Sri Lankan expatriate community in the Kingdom and international investors, highlighting compelling opportunities within Sri Lanka’s capital market following the country’s successful exit from sovereign default and restoration of macroeconomic stability.
The forum was marked by the presence of several senior level policy officials, market leaders and market regulators including; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL); Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; Ameer Ajwad Ambassador of Sri Lanka to the Kingdom of Saudi Arabia.; Senior Prof D.B.P.H. Dissabandara, Chairman of the SEC; Ray Abeywardena, Director of CSE; and Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management.
In his welcome address, Ameer Ajwad stated, that a significant opportunity remains in broadening public participation in the capital market of Sri Lanka. As financial literacy and investment awareness among potential investors are limited, the investor forum would serve to bridge the knowledge gap. The forum offered an excellent opportunity for first-time investors, overseas investors, and those seeking to enhance their knowledge, to learn how to invest prudently, manage risk, and build wealth with discipline and confidence. Ambassador invited participants to make full use of the presence of high-level authorities from Sri Lanka’s key financial institutions, such as the Central Bank of Sri Lanka, the SEC, and the CSE, and to explore investment opportunities in Sri Lanka’s capital market, not only as a pathway to financial growth but also as a meaningful contribution to Sri Lanka’s resilience and long-term prosperity.
Agriculture-rich diversified conglomerate CIC Holdings PLC (CSE: CIC) recorded a consolidated revenue of Rs. 70.28 billion for the nine months ended 31 December 2025 (9MFY26), reflecting an increase of 8.69% YoY compared to the corresponding period of the previous year.
The Group’s gross profit increased by 10.11% to Rs. 18.42 billion, with the gross profit margin for the period under review improving to approximately 26%, supported by disciplined pricing and product mix optimisation. Profit after tax (PAT) increased to Rs. 5.97 billion from Rs. 5.70 billion in the corresponding period of the previous year, despite losses incurred in parts of the Group’s agri operations following the impact of Cyclone Ditwah, which disrupted cultivation activity during the Maha season.
The Group’s Crop Solutions sector remained the largest contributor to consolidated revenue, accounting for approximately 44.7% of total revenue, followed by Livestock Solutions at 21% and Health & Personal Care at 20.18%. The remaining sectors, Industrial Solutions and Agri Produce, contributed 8.6% and 6.4% to Group turnover respectively. Health and Personal Care , particularly export-driven product lines, recorded improved performance during the period, alongside continued growth in feeds, poultry, and veterinary care solutions, which supported the Group’s overall operating results.
Despite cyclone-related disruption to cultivation cycles, the Group delivered a strong operating performance, with EBITDA and operating profit (EBIT) both recording year-on-year growth. Operating profit (EBIT) closed at Rs. 9.67 billion, compared to Rs. 8.62 billion in the corresponding period of the previous year, reflecting the strength of the Group’s diversified portfolio and disciplined cost management.
During the period in review, key Group businesses across the five industry sectors, namely Crop Solutions, Agri Produce, Livestock Solutions, Industrial Solutions, and Health & Personal Care, continued to perform resiliently. Crop Solutions revenue increased from Rs. 28.06 billion to Rs. 32.32 billion, while Livestock Solutions revenue grew from Rs. 13.35 billion to Rs. 14.60 billion. Health & Personal Care revenue improved from Rs. 14.29 billion to Rs. 14.46 billion, supported by herbal health product exports and steady domestic demand. Revenue from Agri Produce increased from Rs. 4.35 billion to Rs. 4.64 billion, while Industrial Solutions revenue rose from Rs. 6.07 billion to Rs. 6.28 billion.
Commenting on the performance, CIC Holdings Group CEO Aroshan Seresinhe said, “Despite the disruption caused by Cyclone Ditwah to agricultural activity during the Maha season, the Group remained focused on supporting farming communities through well clean-up operations, field renovation, and the restoration of cultivation activity.
CSE trading reflected a bullish trend yesterday due to positive quarterly corporate earnings coupled with lower Treasury Bill yields, market analysts said.
Further, institutional participation contributed more than 50 percent to the day’s turnover.
Amid those developments both indices moved upwards. The All Share Price Index went up by 63.67 points, while the S and P SL20 rose by 12.58 points.
Turnover stood at Rs 11.1 billion with10 crossings. The top seven crossings were: JKH 189.5 million shares crossed to the tune of Rs 4.2 billion; its shares traded at Rs 22.70, HNB 3.5 million shares crossed for Rs 1.48 billion; its shares traded at Rs 422, Hemas Holdings 11 million shares crossed for Rs 376.2 million; its shares traded at Rs 34 20, Commercial Bank 1.5 million shares crossed for Rs 336.8 million; its shares traded at Rs 224.50, Sampath Bank 600,000 shares crossed for Rs 93.6 million; its shares sold at Rs 156, Laugfs Gas 868,000 shares crossed for Rs 51.6 million; its shares sold at Rs 71 and Sierra Cables 1 million shares crossed for Rs 36.7 million; its shares sold at Rs 36.70.
In the retail market top seven companies that mainly contributed to the turnover were; Ceylon Land Equity Rs 385 million (20 million shares traded), Commercial Bank Rs 373.9 million (1.7 million shares traded), Luminex Rs 247.2 million (26.7 million shares traded), Colombo Dockyard Rs 152 million (one million shares traded), TJ Lanka Rs 152 million (four million shares traded), Easter Merchants Rs 142 million (8.7 million shares traded) and RIL Properties Rs 116.9 million. During the day 441.3 million share volumes changed hands in 44406 transactions.
It is said that manufacturing sector counters, especially JKH, led the market while the banking sector also performed well, especially HNB and Sampath Bank. Further, the capital goods sector too performed well.Yesterday the Central Bank’s US dollar buying rate was Rs 305.78 and selling rate Rs 313.32.
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