Sri Lanka’s foreign exchange reserves continued to fall this month as the political crisis in Colombo continues.
Forex reserves reportedly fell by 884.9 million US dollars in November 2018, to 7,018.38 million dollars, though the data does not include forex reserves released through swap agreements to maintain a peg or transactions with the Treasury.
The latest fall comes amidst measures taken by the Central Bank of Sri Lanka including cutting the statutory reserve ratio and injecting an estimated 90 billion rupees of cash at zero interest rate into the banking system.
Economy Next reported:
“Sri Lanka's credit system is vulnerable to balance of payments crises, as the central bank tries to maintain artificially low interest rates whenever the economy recovers and credit demand picks up, while operating soft-peg with the US dollar and collecting forex reserves”.
See more from Economy Next here.
We need your support
Sri Lanka is one of the most dangerous places in the world to be a journalist. Tamil journalists are particularly at threat, with at least 41 media workers known to have been killed by the Sri Lankan state or its paramilitaries during and after the armed conflict.
Despite the risks, our team on the ground remain committed to providing detailed and accurate reporting of developments in the Tamil homeland, across the island and around the world, as well as providing expert analysis and insight from the Tamil point of view
We need your support in keeping our journalism going. Support our work today.
For more ways to donate visit https://donate.tamilguardian.com.
