📈 CBSL Absorbs Over US$ 8 Bn from FX Market in 4 Years

• FX Market Purchases & Reserves: The Central Bank of Sri Lanka (CBSL) bought over US$ 8 Bn from the domestic FX market over the past 4 years. Gross official reserves reached US$ 6.9 Bn at end-September 2026, with a target to hit ~US$ 8 Bn by year-end. • Growth Drivers: Purchases were driven by external trade surpluses, led by strong earnings in merchandise, services exports, and tourism. • Policy & Stability Mandate: CBSL affirmed its focus on maintaining price and financial stability under the Central Bank Act. CBSL emphasized zero reliance on short-term monetary or fiscal stimulus, focusing📈 CBSL Purchases Over US$ 8 Bn from Foreign Exchange Market in Four Years • Overall Reserves & FX Purchases: • CBSL bought >US$ 8 Bn from the domestic FX market over the past four years, driven by external surpluses. • Gross official reserves reached US$ 6.9 Bn by end-September 2026. • CBSL Governor target: ~US$ 8 Bn in reserves by year-end 2026. • Key Drivers & Sector Insights: • Growth propelled by resilience in merchandise/services exports and strong recovery in tourism. • Continuous inflows provide a stable foundation for price and financial stability under the new Central Bank Act. • Financial Reforms & Policy Focus: • Financial Sector Efficiency: Pushing for rapid technology adoption and modernized banking workflows. • Payment Systems: Modernizing transaction systems to reduce costs and transition away from cash. • Financial Literacy: Addressing high vulnerability to financial scams despite high general literacy. • Sustainable Growth: Rejecting short-term monetary or fiscal stimulus in favor of long-term structural reforms, addressing supply-side constraints, productivity, and climate risks.