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Tuesday, July 21 2026

Tuesday, July 21 2026

Sri Lanka Foreign Reserves Down $431mn in June

Published Wednesday, 8th July 2026 11:47 AM

MONETABRIEF – Sri Lanka's foreign reserves fell 431 million dollars in June 2026 to 6,450 million, official data showed as reserve collections slowed recent months, amid lower interest rates and debt repayments.

In June the central bank collected 70 million dollars after selling April and may.

Sri Lanka missed a March indicative reserve target set by the International Monetary Fund despite it being lowered.

Sri Lanka's reserve collections have been low throughout 2025 after the last IMF program removed a requirement to sell down the central bank's domestic assets.

Without mopping up liquidity created when dollars are purchased, a central bank cannot hold or 'safeguard' reserves as the new liquidity will turn into credit and imports.

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