Sri Lanka’s official reserve assets climbed past the USD 7 billion threshold at the end of October following aggressive foreign exchange market interventions by the central bank.
Data released by the Central Bank of Sri Lanka (CBSL) revealed that total reserves reached USD 7.09 billion in October 2026, up from USD 6.9 billion the previous month, as foreign currency holdings expanded to USD 6.84 billion.
Net dollar purchases by the monetary authority in October reached USD 191.3 million, mirroring the overall reserve growth during a month in which no foreign exchange was sold.
That intervention represented a sharp increase from the USD 64.2 million bought in September, though it remained below the peak of USD 579 million recorded in August.
Cumulative net purchases for the first ten months of 2026 stand at over USD 1.73 billion, positioning the central bank within USD 270 million of its total 2025 accumulation with two months remaining in the year.
Foreign exchange operations had faced severe disruption earlier in the year following geopolitical tensions in the Middle East, which drove year-to-date currency depreciation to 7.9 percent by late June before substantial central bank buying in July and August helped stabilise the domestic currency.
Official figures also indicate that short-term outflows over the next twelve months total 5.75 billion US dollars, representing 84 percent of foreign currency reserves and leaving approximately USD 1.09 billion unencumbered by near-term obligations.
The steady accumulation of reserves reinforces national financial buffers while helping the central bank maintain stability across foreign exchange markets.
