Gross official reserves provisionally estimated at US dollars 1,815 million

The gross official reserves were provisionally estimated at US dollars 1,815 mn as at end July 2022, Weekly Economic Indicators of the Central Bank indicated on Friday.

The report further said:

The reserve money decreased compared to the previous week mainly due to decrease in the currency in circulation. The total outstanding market liquidity was a deficit of Rs. 607.612 bn by the end of this week, compared to a deficit of Rs. 595.388 bn by the end of last week.During the year up to 05th August 2022, the Sri Lankan rupee depreciated against the US dollar by 44.4 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against the Indian rupee by 40.9 per cent, the pound sterling by 38.2 per cent, the Euro by 38.5 per cent and the Japanese yen by 35.8 per cent during this period.

During the period under review (30.07.2022 to 05.08.2022), crude oil prices showed mixed performance as investors weighted tight supply against fears of slowing global demand and potential increases in output by OPEC+. Overall, during the period under review, Brent and WTI prices decreased by US dollars 8.74 and US dollars 8.85 per barrel, respectively.

Weekly AWPR for the week ending 05th August 2022 decreased by 116 bps to 23.78 per cent compared to the previous week.By 05th August 2022, the All Share Price Index (ASPI) increased by 7.79 per cent to 8,333.37 points and the S&P SL 20 Index increased by 11.43 per cent to 2,728.14 points, compared to the index values of last week.Earnings from exports increased by 14.3 per cent (Y-o-Y) to US dollars 6,514 mn during the first half of 2022 as a result of increased earnings mainly from exports of textiles and garments (19.7%), petroleum products (75.6%), gems, diamonds and jewellery (45.5%), seafood (33.6%) and machinery and mechanical appliances (11.7%). Import expenditure marginally increased by 0.1 per cent (Y-o-Y) to US dollars 10,028 mn during the first half of 2022, mainly due to higher imports of fuel (44.6%), textiles and textile articles (16.2%), cereals and milling industry products (971.1%) and diamonds, precious stones and metals(59.6%). However, the deficit in the trade account narrowed to US dollars 3,514 mn during the first half of 2022 from US dollars 4,316 mn in the corresponding period of 2021.

The export unit value index marginally increased by 0.3 per cent, (Y-o-Y), in June 2022, mainly due to higher prices registered in agricultural exports. The import unit value index in June 2022 increased by 6.1 per cent, (year-on-year), due to higher prices mainly recorded in intermediate goods. Accordingly, the terms of trade deteriorated by 5.4 per cent, (Y-o-Y), to 83.4 index points in June 2022.The average price of tea (in the Colombo Auction) increased to US dollars 3.50 per kg in June 2022 from US dollars 2.93 per kg in June 2021.