Sri Lanka’s gross official reserves stood at 7.9 billion dollars at end February 2020, equivalent to 4.7 months of imports, the Central Bank said.

Total foreign assets, which consist of gross official reserves and foreign assets of the banking sector, amounted to 10.9 billion dollars at end February 2020, equivalent to 6.5 months of imports.

Meanwhile, the Sri Lankan rupee, which remained stable until mid-March 2020, depreciated sharply during the latter part of March up to mid-April 2020, mainly due to adverse speculation in the market with the spread of COVID-19 outbreak.

However, the exchange rate gradually stabilised, with a notable appreciation in the first week of May 2020.

Accordingly, the rupee recorded a depreciation of 3.4 percent against the US dollar by 15 May 2020.

Reflecting cross-currency movements, the rupee depreciated against the Japanese yen while appreciating against the euro, the pound sterling, the Canadian dollar, the Australian dollar and the Indian rupee during the year up to 15 May 2020.

Source:- LBO

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