Official reserves decline 6.9% to $ 6.45 b in June

Monday, 13 July 2026 03:07 - - {{hitsCtrl.values.hits}}

Short-term foreign currency outflows from reserves estimated at $ 2.15 b
Short positions in forwards and futures in foreign currencies against domestic currency, including forward leg of currency swaps, amount to $ 4.04 b
Despite IMF revising down end-2026 NIR target to $ 778 m from $ 944 m, CBSL expected to up dollar purchases

Sri Lanka’s official reserve assets declined by 6.9% or $ 431 million in June, with the Central Bank of Sri Lanka’s (CBSL) gross official reserves falling to $ 6.45 billion from $ 6.88 billion at end-May.

According to CBSL data, foreign currency reserves accounted for the bulk of the decline, falling by $ 407 million during the month to $ 6.25 billion. Gold holdings also eased to $ 191 million at end-June from $ 216 million a month earlier.

The CBSL estimated short-term net foreign currency outflows from reserves at $ 2.15 billion, comprising liabilities arising from loans, securities, and deposits.

CBSL data also showed that the aggregate short positions in forwards and futures in foreign currencies against the domestic currency, including the forward leg of currency swaps, amounted to $ 4.04 billion at end-June. The CBSL noted that a substantial portion of these positions is expected to be rolled over.

The International Monetary Fund’s (IMF) latest program assessment revised Sri Lanka’s end-2026 Net International Reserves (NIR) target down to $ 778 million from $ 944 million agreed at the Fourth Review.

NIR, which measures the CBSL’s usable foreign reserves after accounting for short-term foreign currency liabilities and swap obligations, is estimated to have turned negative.

As a result, the CBSL is expected to remain a net purchaser of foreign exchange to rebuild reserves and meet the revised program target, implying continued depreciation pressure on the rupee over the remainder of the year, with the IMF saying the exchange rate should not be controlled but allowed to absorb external sector shocks.