Tuesday Oct 20, 2026
Tuesday Oct 20, 2026
Monday, 19 October 2026 04:35 - - {{hitsCtrl.values.hits}}
The Central Bank of Sri Lanka (CBSL) has purchased more than $ 8 billion from the domestic foreign exchange market over the past four years. The purchases were made possible by the country earning more than it spent, a senior official said, as the CBSL turns to financial sector reform, payments, and financial literacy to support growth.
“It was possible for us to purchase more than $ 8 billion over the past four years because the country generated surpluses,” CBSL Senior Deputy Governor Dr. Chandranath Amarasekara said. He was speaking at The Ceylon Chamber of Commerce’s Sri Lanka Economic and Investment Summit (SLEIS) 2026 last week.
Reserves stood at $ 6.9 billion at end-September, he said. CBSL Governor Dr. Nandalal Weerasinghe said in August that he aimed to raise gross foreign exchange reserves to about $ 8 billion by end-2026, from roughly $ 6.6 billion at the time.
Dr. Amarasekara attributed the surpluses largely to the economy’s resilience and to earnings from merchandise and services exports, including tourism.
He said the CBSL’s mandate under the new Central Bank Act is to maintain price stability and financial stability, laying a stable base on which businesses and households can operate. However, he said the CBSL also has a ‘vested interest’ in the economy doing well. “It is in our interest to make sure that these flows come in, that investment takes place and that there is sustainable growth in the economy,” he said.
To that end, he said the banking and financial sector must work more efficiently than it does now. Global finance is changing and technology adoption is rapid, and local progress has not been enough. The CBSL will work with the financial sector so that it can meet the needs of a growing economy.
On payments, Dr. Amarasekara noted that the world is moving away from cash. He said the CBSL has a key role in improving the efficiency of the payment system and, with the financial and private sectors, in promoting easier payment methods with lower transaction costs.
He also flagged a gap in financial literacy, the focus of the current Financial Literacy Month. Even as the financial system talks of advanced technologies, he said, Sri Lankans continue to fall victim to some of the worst financial scams. “Sri Lankans’ literacy may be high, but financial literacy is quite low,” he said, adding that the CBSL is addressing the issue with financial sector participants.
The CBSL is also researching areas outside traditional central banking that affect its mandate, including supply-side constraints, climate change, and productivity, and is sharing its findings with the public.
“Unlike in the past, we do not want to rely on short-term stimulus from the CBSL or the Treasury,” Dr. Amarasekara said. He added that appropriate reforms were essential to achieve sustained high growth, which the CBSL would always support.
