📈 CBSL Absorbs Record US$ 579 Mn from Domestic FX Market in August

• FX Market Interventions: - The Central Bank of Sri Lanka (CBSL) recorded a single-month net purchase of US$ 579 Mn from the domestic FX market in August 2026, the highest since January 2025. - Surpassed previous monthly highs of US$ 461 Mn in February 2026 and US$ 356 Mn in August 2025. - Cumulative net purchases for the first eight months of 2026 crossed US$ 1.48 Bn (compared to US$ 2 Bn recorded across all of 2025). • Reserve Accumulation: - CBSL is actively accumulating foreign exchange reserves to absorb external pressures rather than drawing them down defensively, marking a shift from historical balance-of-payments crisis strategies. • Rupee Trajectory & Market Trends: - Year-to-date (YTD) depreciation of the rupee against the US dollar narrowed to 5.5% by end-August, recovering from a peak depreciation of 7.9% in June driven by Middle East conflict shocks. - CBSL was a net FX seller during peak stress in April (US$ 12.9 Mn) and May (US$ 211.3 Mn) before resuming net purchases in June (US$ 70.5 Mn), July (US$ 348.6 Mn), and August.