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CBSL expects official reserves to be above USD 3 billion by 31 Dec.

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The Central Bank of Sri Lanka yesterday said that they have taken measures to ensure that official reserves will remain above US dollars 3 billion by end of 2021. CBSL added that despite the headwinds of the economic impact of COVID-19 and challenges posed by adverse developments in the external sector, the Sri Lankan economy showed resilience throughout 2021.

The country has also successfully met its debt obligations by repaying foreign loans, including the payments of the International Sovereign Bonds, ,” CBSL said in a press release.

Given below are excerpts of the press release: “Since the beginning of the year both the Central Bank and the Government have been actively pursuing possible avenues to replenish official reserves, with an emphasis on encouraging non-debt flows, so that the existing foreign debt could be managed in a sustainable manner. These efforts were accelerated since October 2021 with the announcement of the Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability, which set out envisaged targets for build up of official reserves in the near term.

“As articulated in the Six-Month Road Map, number of foreign exchange inflows are envisaged in the very near term. Major foreign exchange inflows to the Central Bank include SWAP facilities with Middle Eastern and other regional central banks amounting to about US dollars 2.0 billion. The Government is also in the process of securing Government to Government financing, syndicated loans as well as loans from multilateral organisations. In addition, the expected foreign exchange facilities that were negotiated during the high-level visits abroad made by authorities are also progressing well. Further, the interventions made by the Central Bank on several facets of the foreign exchange market, such as incentive scheme introduced for workers’ remittances, and the repatriation and conversion requirements on account of exports proceeds will improve the liquidity in the domestic market, thereby enabling the Central Bank to build up official reserves further. With the recent rise in departures for foreign employment and exponential growth observed in tourist arrivals, the external sector is expected to recover well in the period ahead and the pressures observed at present are expected to moderate with increased inflows to the economy. The Government and the Central Bank remain confident that these expected inflows will materialise and the reserve position will remain at comfortable level throughout the year 2022.”



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Ministerial Consultative Committee unanimously consent to canceling the nominations submitted for the Local Government Elections

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The Ministerial Consultative Committee on Public Administration, Home Affairs, Provincial Councils & Local Government chaired by  Prime Minister Dinesh Gunawardena as well as the Minister of Public Administration, Home Affairs, Provincial Councils and Local Government  unanimously consented to cancel the nominations submitted for the Local Government Elections given that those who have submitted nominations have faced great difficulties due to the postponement of the elections.

 

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Kerala cannabis with a street value of over Rs.132 million held by Navy in Negombo

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A special search operation conducted by the Navy in the Mankuliya Lagoon of Negombo today (21st September 2023) led to the apprehension of a dinghy loaded with over 400kg of Kerala cannabis with an estimated street value of over Rs. 132 million

The seized consignment of Kerala cannabis and the dinghy were handed over to the Negombo Excise Station for onward legal action

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IMF MD and President Wickremesinghe focus on Financial Reforms and Debt Restructuring initiatives

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In a crucial meeting held during the United Nations General Assembly (UNGA) in New York, Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva, met with President, Ranil Wickremesinghe, to discuss vital economic matters.

During the meeting, Ms. Georgieva and President Wickremesinghe delved into the ongoing financial sector reforms and the substantial progress made in debt restructuring initiatives. The IMF Managing Director commended the Sri Lankan government for its effective measures in curbing inflation and nurturing a conducive environment for business growth, as well as the flourishing tourism industry. She expressed her satisfaction with the government’s commitment to enhancing the overall economic landscape.

(PMD)

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