Sri Lanka reserves hit $7.3 Billion in strong recovery

Sri Lanka’s gross official reserves rose to USD 7.3 billion by the end of February 2026, showing a steady strengthening of the country’s external position.

According to the Central Bank of Sri Lanka’s latest Monetary Policy Review, the increase reflects continued improvement in the country’s foreign exchange reserves after several difficult years.

The reserve build-up shows a clear recovery trend over time. Reserves were at USD 5.7 billion in 2020 but dropped sharply to USD 3.1 billion in 2021 and further to USD 1.9 billion in 2022 during the peak of the economic crisis and balance of payments pressures.

Since then, reserves have gradually improved. They increased to USD 4.4 billion in 2023, rose further to USD 6.1 billion in 2024, and reached USD 6.8 billion in 2025. This upward trend continued into 2026, with reserves reaching USD 7.3 billion by the end of February.

The growth in reserves has been supported by sustained foreign exchange purchases by the Central Bank. In 2020, there was a small net inflow of USD 0.3 billion. However, during the crisis years, the Central Bank recorded net sales of USD 0.8 billion in 2021 and USD 0.6 billion in 2022.

This trend changed in 2023, when the Central Bank made net foreign exchange purchases of USD 1.7 billion. The amount increased to USD 2.8 billion in 2024, followed by USD 2.0 billion in 2025. In just the first two months of 2026, net purchases already reached USD 0.7 billion.

The steady increase in reserves reflects improved foreign exchange inflows and continued market-based operations by the Central Bank.

It also helps strengthen confidence in Sri Lanka’s external financial position.

---

---