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Drastic drop in gold reserves: CB clarifies

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The Central Bank said yesterday that it decides when to increase or reduce gold reserves depending on the country-specific circumstances and economic priorities. In 2008, the CBSL’s gold holdings was only USD 92 million (3.6 percent of gross official reserves of USD 2.6 billion), but was gradually increased by end 2014 to USD 893 million (10.9 percent of gross official reserves of USD 8.2 billion).

Issuing a press release, the CBSL said that the gold reserves have fallen to USD 175 million (5.6 per cent of gross official reserves of USD 3.1 billion) by the end of 2021, based on the need to enhance the liquidity of the reserve portfolio.

“The CBSL may, at a future date, consider increasing its gold holdings when the foreign reserve levels grow to values that may warrant a change in the composition of the reserve portfolio,” the press release said.

Given below are excerpts of the press release: “International reserve management of a central bank is a dynamic and technical process which is usually designed to ensure that a country’s foreign assets are readily available and controlled to achieve a defined range of objectives. Accordingly, the adoption of appropriate reserve management policies relating to the asset composition, currency mix, liquidity needs, tenor, profitability, safety, etc. of investment instruments could vary from country to country and would depend on the country-specific circumstances and economic priorities.

“In this background, the attention of the Central Bank of Sri Lanka (CBSL) has been drawn to several misleading and erroneous interpretations regarding the change in the composition of the CBSL’s international reserve position as at end December 2021. Accordingly, the CBSL wishes to clarify that the changes in the composition of official reserves is in accordance with the current reserve management needs and priorities, considering all aspects of the reserve management requirements, as set out above. In fact, the CBSL’s gold holdings by end 2008 was only USD 92 million (3.6 per cent of gross official reserves of USD 2.6 billion), but was gradually increased by end 2014 to USD 893 million (10.9 per cent of gross official reserves of USD 8.2 billion). Hence, it is evident that the share of gold holdings in the reserve may change from time to time, reflecting the needs of the CBSL to buy, hold or liquidate its gold holdings in accordance with the prevailing reserve management priorities.

“In that background, while the CBSL’s gold holdings by end 2021 may have decreased to USD 175 million (5.6 per cent of gross official reserves of USD 3.1 billion) based on the need to enhance the liquidity of the reserve portfolio, the CBSL may, at a future date, consider increasing its gold holdings when the foreign reserve levels grow to values that may warrant a change in the composition of the reserve portfolio.”



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Navy seize an Indian fishing boat poaching in Mannar seas

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During an operation conducted in the dark hours of 22 Feb 26, the Sri Lanka Navy seized an Indian fishing boat and  apprehended  twelve (12) Indian fishermen while they were poaching in Sri Lankan waters, in the sea area south of Mannar.

The seized boat  and the Indian fishermen were handed over to the Fisheries Inspector of Dikovita for onward legal proceedings.

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Families of those sentenced to death for killing MP Atukorale seek AKD’s intervention

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FSL assures legal backing for them

Families of those sentenced to death by the Three-member Gampaha High Trial-at-Bar, over the killing of SLPP MP Amarakeerthi Atukorale, and his police bodyguard, met a senior official of the Presidential Secretariat, yesterday (23), to seek backing for their move to appeal against the verdict.

Having made representations, they addressed the media, outside the Presidential Secretariat, where they declared their intention to move the higher court against the decision.

The SLPP MP and his security officer were killed by an Aragalaya mob on 09 May, 2022, at Nittambuwa. The same day Aragalaya mobs unleashed violence against the then government MPs across the country, torching dozens of their properties.

The Frontline Socialist Party (FSP) yesterday said that they would help the families of those sentenced to death to move court against the Gampaha High Court Trial-at-Bar decision. Responding to The Island queries, FSP spokesman Pubudu Jayagoda said that their representatives had already met the families and necessary work was being done to move the Supreme Court. Twenty three persons were acquitted and four handed six-month prison terms, suspended for five years

Jayagoda said that one of the HC judges differed in the ruling. Asked whether they received backing from any other political party and groups that had been involved in the 2022 protest campaign to defend those who had been found guilty, Jayagoda said such support was lacking.

The JVP/NPP played a significant role in the violent protest campaign that forced President Gotabaya Rajapaksa to step down. Pointing out that the Attorney General, too, was appealing against the court decision on the basis that the number of persons sentenced to death should be much higher, Jayagoda said that the Nittambuwa incident couldn’t be examined in isolation without taking into consideration the SLPP goon attack on Galle Face protesters on 09 May, 2022. (SF)

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OPV leaves Baltimore, expected in Colombo in May

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SLN officers wave to those on the shore as the newly acquired P 628 departs Baltimore, US (pic courtesy SLN)

Offshore Patrol Vessel P 628 of the Sri Lanka Navy departed Baltimore, USA, for Colombo, on 20 February.

The ex-United States Coast Guard Cutter, USCGC Decisive was officially handed over to the SLN on 02 December, 2025, as the latest addition to the SLN fleet, under the Pennant Number P 628.

Measuring 64 metres in length, this ‘B-Type Reliance Class 210-foot Cutter’ is equipped with advanced technological systems and facilities, capable of conducting extensive surveillance operations spanning up to 6,000 nautical miles per patrol.

The vessel’s voyage to Colombo is historic, possibly marking the longest-ever passage undertaken by a Sri Lanka Navy ship. Covering approximately 14,775 nautical miles, the journey will see the P 628 navigate from Baltimore through the Atlantic Ocean, the Panama Canal (a first for a Sri Lankan naval vessel), the Pacific Ocean, and into the Indian Ocean, via the Straits of Malacca. The ship is expected to arrive in Sri Lanka during the first week of May, 2026.

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