Foreign reserves at US $ 3.59bn by end-August

Sri Lanka’s official foreign reserve assets saw a decline of 4.4 percent from the end of July to US $ 3,598 million by the conclusion of August.
At the end of July, Sri Lanka’s official foreign reserves stood at US $ 3,765 million.
It’s worth noting that these official reserve assets include a US $ 1.4 billion swap facility obtained from the People’s Bank of China, subject to certain conditions regarding its use.
Central Bank Governor Dr. Nandalal Weerasinghe this week said that when the foreign reserves reach US $ 4.2 billion, which amounts to three months of imports, the Chinese swap would become usable.
“That facility will become usable when reserves reach three months of imports, which is roughly about US $ 4.2 billion,” Dr. Weerasinghe told a virtual investor summit organised by a Colombo-based investment banking group.
This decrease in foreign reserve assets can be attributed to Sri Lanka’s repayment of US $ 150 million, out of a total US $ 200 million loan owed to Bangladesh in 2021.