According to a report by Fitch Ratings, Sri Lanka’s official foreign reserves reached USD 6.5 billion by October of this year. This marks an impressive 81% increase compared to the same month last year. The growth in reserves is largely attributed to the support from the International Monetary Fund (IMF) program, which has played a crucial role in strengthening the country’s financial position
The increase in foreign reserves is seen as a positive development for Sri Lanka’s economy, offering greater stability and improving its ability to meet external debt obligations. However, concerns remain regarding the sustainability of the country’s financial situation, and experts will be closely monitoring how the government manages the reserves in the coming months.
The rise in reserves reflects ongoing efforts by Sri Lanka to stabilize its economy after a period of severe financial distress, following the global pandemic and subsequent economic challenges. The IMF’s assistance, alongside other measures, has contributed to this improvement, providing some hope for the country’s economic recovery in the near future.
