📈 Sri Lanka Central Bank Carefully Builds Reserves Amid Oil Price Pressure

• Reserve Build-Up Status: Gross official reserves stood stagnant at around US$ 6.9 Bn as of end-September 2026. The Central Bank aims to reach US$ 8.0 Bn by year-end under the IMF commitment, adopting a measured pace to avoid market volatility or forced currency devaluation. • Factors Behind Slow Reserve Accumulation: An estimated US$ 2.0 Bn in potential reserve expansion was redirected toward elevated petroleum import bills following Middle East supply disruptions and surging global oil prices, particularly in May. • Exchange Rate Dynamics: The Rupee has depreciated 6.7% against the US dollar year-to-date, currently trading near the 330 level (recovering from its low of 360 in March 2022). The Central Bank continues to allow a gradual movement aligned with market supply and demand.