FINANCIAL CHRONICLE – In August, Sri Lanka’s Central Bank recorded a net purchase of US$579 million, as indicated by official statistics, reflecting a recovery of the local currency, which had previously reached a four-year low in May.
This figure marks the highest net acquisition by the Central Bank from the domestic foreign exchange market since March 2024.
Throughout August, the Central Bank refrained from selling any dollars, following a net sale of over US$211 million in May, which was the first such transaction in 22 months.
Submit Your Press Release
Get your company news, announcements, launches, appointments and events in front of a wider audience.
For the first eight months of 2026, the Central Bank has net purchased a total of US$1,484 million, building on a net acquisition of US$2 billion recorded in the previous year.
In May, the Sri Lankan rupee faced significant downward pressure, largely due to an unexpectedly high fuel import bill stemming from escalating tensions in the Middle East, coupled with a persistent demand for dollars for purchasing new vehicles.
The Central Bank’s strategy of aggressively buying dollars aims to strengthen foreign currency reserves to fulfill commitments made to the International Monetary Fund (IMF) under a US$3 billion external financing arrangement and to manage the repayment of the nation’s multilateral and bilateral loans.
This proactive approach to reserve accumulation precedes the scheduled repayment of foreign debts to sovereign bondholders in April 2028. (Colombo/September 07/2026)
