The Central Bank of Sri Lanka (CBSL) announced its highest annual foreign exchange purchases from the domestic forex market in 2024, exceeding $2.8 billion (net). Gross official reserves also grew to $6.1 billion by the end of 2024, compared to $4.4 billion at the close of 2023.
CBSL Governor Dr. Nandalal Weerasinghe highlighted the external sector’s positive momentum during the presentation of the CBSL Policy Agenda for 2025 and Beyond. The Balance of Payments (BOP) recorded a surplus for the second consecutive year, marking a milestone in Sri Lanka’s economic resilience.
The CBSL maintained its flexible exchange rate policy in alignment with the Flexible Inflation Targeting (FIT) framework. This policy, along with net forex inflows and improved market sentiment, contributed to the appreciation and stability of the Sri Lanka Rupee in 2024.
Dr. Weerasinghe emphasized the CBSL’s commitment to a market-determined and flexible exchange rate to shield against external shocks. He also announced plans to enhance the foreign exchange market through a benchmark spot exchange rate and improved risk management systems.
Additionally, the CBSL operationalized the International Transactions Reporting System (ITRS) in 2023, using its data to publish monthly statistics on trade in services starting January 2024. This initiative aims to improve the accuracy of external sector statistics, supporting data-driven policy decisions.