Official reserves fall $ 267 m to $ 6.8 b in March as forex obligations remain elevated

Monday, 11 May 2026 00:22 - - {{hitsCtrl.values.hits}}

CBSL turns net seller of US dollars in domestic market for first time in 22 months
April sales amounted to $ 95.9 m, buying $ 83 m

Sri Lanka’s official reserve assets held by the Central Bank of Sri Lanka (CBSL) declined by $ 267 million in March to $ 6.76 billion, amid lower foreign currency reserve holdings and continued external financing obligations.

According to the latest CBSL data, foreign currency reserves fell by $ 295 million to $ 6.54 billion in March from $ 6.83 billion in February amid escalating global energy supply shocks due to the US-Israel war on Iran.

Gold holdings also edged lower, declining by $ 3 million to $ 219 million from $ 222 million a month earlier.

Despite the decline in headline reserves, CBSL data also showed the country continues to face sizeable near-term foreign currency obligations.

Predetermined short-term net drains on foreign currency assets amount to $ 2.1 billion over the next 12 months, comprising repayments relating to foreign currency loans, securities, and deposits.

The aggregate short position in forwards and futures in foreign currencies vis-à-vis the rupee, including the forward leg of currency swaps, amounted to $ 3.87 billion.

The position reflects future foreign exchange obligations arising largely from swap-related transactions, although the CBSL said the major share of swaps is expected to be rolled over, limiting immediate reserve outflows.

External sector inflows nevertheless remained relatively resilient during the first quarter of 2026, despite widening trade pressures.

Sri Lanka’s trade deficit widened to $ 2.3 billion during the January-March period, while tourism earnings amounted to $ 954 million.

Workers’ remittances remained robust at $ 2.3 billion during the first quarter, continuing to provide a key buffer to the external account amid rising energy-related import pressures linked to the Middle East conflict.

The CBSL on Friday shared data foreign currency purchases and sales from the domestic market.

It became a net seller of US dollars in April, marking the first time in 22 months.

The CBSL recorded net dollar sales of $ 13 million in April 2026. The last instance of net dollar sales was reported in June 2024. Despite the April reversal, the Central Bank remained a net purchaser of foreign exchange during the first four months of 2026, buying a cumulative $ 697.2 million, following net purchases of around $ 2 billion in 2025.