Sri lanka News- Sri Lanka’s gross foreign reserves grew to 1,920 million US dollars in May 2021 from 1,812 million US dollars in April, data from the central bank showed.
Foreign currency reserves grew to 1,805 million US dollars from 1,602 million US dollars, special drawing rights fell to 29 million US dollars from 115 million US dollars.
Gold reserves were flat at 28 million US dollars.
The central bank is borrowing dollars from the Reserve Bank of India through a deferment of payments under the Asian Clearing Union and has been getting deeper into debt, after running out of reserves.
The central bank is also operating a surrender rule forcing banks to sell dollars to the agency and intervening in the forex market, preventing a float.
However, the agency has raised rates allowing credit and economic activities to slow. (Colombo/June08/2022)