Thursday, July 23 2026
Thursday, July 23 2026
MONETABRIEF – Sri Lanka has missed an indicative target for foreign reserves set in an International Monetary Fund program, in the wake of strong credit growth and liquidity injected through swaps.
Sri Lanka was originally set a target for 593 million US dollars after the fourth review of the IMF program which was then revised down to 485 million US dollars, in the current IMF program according to the last published staff report.
However, the actual out-turn was 426 million dollars.
Sri Lanka has been unable to collect gross reserves projected by the International Monetary Fund since a domestic assets target for the central bank was kept flat in the previous phase of the program.
After the last double review, also the domestic assets are fixed at 2,510 billion rupees.
The central bank prints money when it buys dollars, unlike the Treasury and cannot 'safeguard' them unless the new rupees created are extinguished through domestic asset sales.
The central bank however can retain reserves up to the coupons paid on its government bond portfolio and any increase in reserve money.
Analysts have called on the Treasury to collect reserves as the action does not create money, and will also deprive the central bank a chance to print money and depreciate the currency by dishonoring the notes as happened in over the past year. (Colombo/July23/2026)
| US Dollar | 340.98 | Sell - |
| Euro | 391.44 | Sell - |
| Japan Yen | 2.114 | Sell - |
| Sterling | 458.31 | Sell - |
| AED | 91.58 | Indi - |
| 3 month bill | 9.95 | 0.18 ▼ |
| 12-m bill | 10.20% | 0 - |
| Gold | $4035 | - - |
| ASPI | 21,199.37 | 49.8 ▲ |
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