Deputy Finance Minister Anil Jayantha Fernando told Parliament yesterday (19) that Sri Lanka’s $2.35 billion in dollar liabilities owed to domestic banks are not deducted from the country’s gross official reserves when calculating Net International Reserves (NIR).
He stated that Sri Lanka’s gross official reserves (GOR) stood at a provisional $6.8 billion by the end of April 2026.
According to the Central Bank’s definition, NIR is calculated by subtracting the Central Bank’s liabilities from gross official reserves, including outstanding international currency swaps and liabilities linked to the International Monetary Fund Extended Fund Facility (EFF) programme launched in 2016.
Fernando highlighted a steady improvement in Sri Lanka’s NIR, noting that it rose from negative $404 million in 2023 to $2.49 billion in 2024, before increasing further to $4.29 billion in 2025 — marking a 73% rise.
He further explained that Sri Lanka’s reserve position as of end-April 2026 included $6.5 billion in foreign currency reserves, a reserve position of SDR 4 million with the IMF, and $219 million in gold reserves.
Despite the healthy reserve position, Sri Lanka remains liable to repay $2.347 billion in foreign exchange obligations to domestic licensed banks over the next three years.
Of this, $1.84 billion is due in 2026, $501 million in 2027, $25 million in 2028, and $3 million in 2029.
The Deputy Minister also noted that while Sri Lanka has access to a $1.4 billion currency swap facility with the People's Bank of China, the funds are not immediately deployable.
He said the swap, valid until December 2027, currently carries no cost and has not yet been drawn upon.
In addition, he said proceeds from the PBOC swap and the foreign exchange balance of the Sri Lanka deposit insurance fund are excluded from immediately usable reserves.
Fernando added that Sri Lanka’s currency swap agreement with the Reserve Bank of India, valued at $2.6 billion and initiated in October 2023, remains valid until December 2026, though full repayment is expected by September 2026.
Latest News
Bowatenna Reservoir to undergo water emptying for essential maintenance
Julian Weber overtakes Rumesh Tharanga to secure world No. 1 spot in javelin throw
The Beatles’ Apple Corps, Universal Music sign merchandise deal
Cremation of Venerable Rambukana Siddhartha Thera to take place in Dehiwala
Heat index expected to reach caution level in several districts tomorrow
Janaraja carries sacred casket in Kandy procession after 25 years
AL student passes away after falling ill during exam
“Cautious sentiment keeps the market on the back foot”
Man arrested over terror camp in Pallai claim remanded
Digital system introduced for traffic fine payments from next month
