Country’s foreign reserves rose in May for first time in five months

Information released by the Central Bank (CBSL) on Wednesday (08) shows the country’s gross foreign reserves increased to 1,920 million US dollars in May 2022 from USD 1,812 million in April.

This is an increase of 6 percent.

The CBSL said foreign currency reserves grew to 1,805 million US dollars from 1,602 million. This is an increase of 12.7 percent.

Gold reserves were flat at 28 million US dollars.

Reserve position in the IMF increased slightly to 65 million US Dollars, up from 64 million in April.

This is the first time that Sri Lanka’s reserves rose in five months.

The rise is likely due to deferment of payments to India under an Asian Clearing Union.

The figure includes a swap facility from the People’s Bank of China, of about $1.5 billion. Prime Minister Ranil Wickremesinghe said that this money could only be used if Sri Lanka has foreign reserves to manage imports for three months.

The Prime Minister said it is working with China to change the conditions, allowing Sri Lanka to use the money. (RK)a