Sri Lanka’s official statistics show increase in forex reserves in October 2018 following Chinese loan
Official data of the government of Sri Lanka has noted that forex reserves have recorded an increase by US$ 736 million to US$ 7,900 million in October 2018 from a month earlier. Reports state that the local received from China last month had also helped boost the forex reserve.
In September forex reserves fell by US$ 1.4 billion to US$ 7,180 million.
In October Sri Lanka had received the proceeds of a US$ 1 billion loan from China, boosting forex reserves.
According to local media reports, interventions have also continued in forex markets, with sales of stocks and bond by foreign investors amid a political crisis.
Sri Lanka is now sterilizing forex sales or printing money to fill liquidity shortages coming from dollar sales and maintain the monetary base, reports add.
The increasing forex reserves in Sri Lanka are indicative of the growing economy in the country. Given the many trade agreements enjoyed by Sri Lanka, it would definitely boost the confidence among the foreign business community on engaging in business ventures with Sri Lanka.
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