Harsha predicts reserves to reach $ 1.25 b by year end

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Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva, speaking at a press conference, indicated a looming forex crisis in the country during the next six months, as the country does not have a stable flow of foreign currency.

Dr. Harsha de Silva explained that there will only be $ 1. 25 billion left as foreign reserves by the end of this year as import expenses per month hover around $ 1.6 billion amidst the import halt that took place at the beginning of the pandemic.

He said the Government only has $ 3.53 billion of foreign reserves left when gold and other reserves are excluded from the current collection of $ 4 billion, as of end-May 2021.

He further added that the Central Bank of Sri Lanka (CBSL) assumes that the country needs reserves of approximately $ 8 billion during the coming 12 months. At the same time, he showed that last week onwards, in the weekly CBSL economic review, the amount of the foreign reserves of the country has not been indicated, which is usually published on the very first page.

Furthermore, Dr. de Silva elaborated that the country needs to be able to pay for the bonds, the interest of the loans that have been taken, as well as the current deficit by the end of this year.

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