In a significant boost to Sri Lanka’s economic resilience, the Finance Ministry has reported notable foreign exchange inflows totaling USD 780 million, surpassing initial expectations. This influx is poised to reinforce the country’s external buffers, with gross official reserves anticipated to exceed USD 4 billion by the end of 2023.
The injection of funds includes a second tranche of USD 337 million from the International Monetary Fund (IMF), USD 200 million from the Asian Development Bank (ADB) earmarked for various programs, and an additional USD 250 million from the World Bank. Collectively, these disbursements, totaling USD 787 million, are strategically directed towards strengthening budgetary support and further fortifying the nation’s external reserves.
This positive development comes in the wake of a challenging period in November of the previous year when Sri Lanka’s foreign reserves dwindled to USD 1.58 billion. When the Rajapaksa government took office in November 2019, country’s foreign reserves were approximately US$ 7.5 billion.
