Sri Lanka’s Reserves to Hit Highest Level Since Crisis by December

COLOMBO (News 1st): Sri Lanka is on track to record its highest foreign reserves since the economic crisis by the end of December, according to Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka.

Dr. Weerasinghe explained that foreign currency debt service payments in 2024/25 have been higher than previous years, as the government settled obligations to Bank of Ceylon, state banks, and loans taken for CPC and other SOEs. 

These payments came in addition to external debt servicing post-restructuring, which stood at around USD 2.75 billion.

He noted that while debt payments were made on schedule, inflows from the IMF and ADB were delayed due to implementation issues.

“When these inflows arrive in December, they will offset reserve outflows and push reserves to the highest level since the crisis,” he said.

The Governor emphasized that this is a timing difference, not a structural issue: “We have to meet debt service payments continuously, but inflows were delayed. With IMF and ADB funds coming in December, reserves will rise significantly.”