Sri Lanka’s official reserve assets witnessed a decline of 3% in April 2025, according to data released by the Central Bank of Sri Lanka (CBSL). The total reserves, which stood at USD 6.53 billion at the end of March, dropped to USD 6.32 billion by the end of April.
The decrease marks a notable shift in the island nation’s foreign reserve holdings, which are closely watched indicators of economic stability and external liquidity. While CBSL has not yet specified the exact reasons behind the monthly decline, such movements are often influenced by factors such as foreign debt servicing, currency interventions, and fluctuations in global market conditions.
Sri Lanka has been navigating a challenging post-crisis recovery path, with external reserves playing a critical role in managing imports, stabilizing the rupee, and supporting investor confidence. Analysts will likely monitor subsequent CBSL updates to assess whether this drop is a temporary fluctuation or an early signal of broader fiscal pressures.