FINANCIAL CHRONICLE – According to official statistics, Sri Lanka’s Central Bank acquired a net total of US$348.6 million in July, as the local currency began to stabilize after reaching a four-year low in May of this year.
In July, the Central Bank refrained from selling any US dollars, following a net sale of over US$211 million in May, marking the first such sale in 22 months.
During the first seven months of 2026, the Central Bank has reported a net acquisition of US$905 million, building on a substantial net purchase of US$2 billion in the previous year.
In May, the Sri Lankan rupee faced significant downward pressure due to an increased import bill for fuel, driven by tensions in the Middle East and a persistent demand for dollars for purchasing new vehicles.
To bolster its foreign currency reserves, the Central Bank has been actively purchasing dollars from the market. This effort is aimed at meeting the commitments agreed upon with the International Monetary Fund (IMF) as part of a US$3 billion external funding arrangement and to facilitate repayments on the country’s multilateral and bilateral loans.
This proactive approach to reserve accumulation is particularly important as the country prepares for the repayment of foreign debts to sovereign bondholders, which is scheduled for April 2028. (Colombo/August 11/2026)
