CBSL Net Foreign Exchange Purchases Hit US$ 2 Bn in 2025 📈

The Central Bank of Sri Lanka (CBSL) maintained its role as a significant net buyer of foreign currency in 2025, according to the latest Market Operations Report. These interventions aimed to bolster national buffers while managing currency volatility. • Overall FX Operations & Reserves • CBSL recorded net foreign exchange purchases of US$ 1.99 Bn for the full year 2025. • Gross official reserves rose to US$ 6.8 Bn by year-end, the highest post-crisis level. • Total absorption reached US$ 2.10 Bn against a supply of US$ 108.0 Mn. • Reserves include a People’s Bank of China swap facility equivalent to US$ 1.4 Bn. • Money Market & Liquidity • FX operations injected approximately Rs. 788.9 Bn of net liquidity into the domestic market. • Year-end liquidity surplus stood at Rs. 175.2 Bn, slightly up from Rs. 168.1 Bn in 2024. • Liquidity was partially offset by Rs. 356.1 Bn in net government foreign loan repayments and Rs. 210.2 Bn in currency withdrawals. • Exchange Rate & Sector Impact • The Sri Lankan Rupee depreciated by 5.6% against the US Dollar in 2025. • Depreciation was driven by increased demand for motor vehicle imports and infrastructure-related outflows. • External stability was supported by steady inflows from workers’ remittances and export proceeds, facilitating continued reserve accumulation.