Sri Lanka’s Central Bank has aggressively absorbed foreign currency from the market, pushing national reserves past $7.28 billion as authorities rebuild economic stability and strengthen external financial buffers in 2026.
The Central Bank of Sri Lanka significantly increased its foreign exchange purchases in February 2026, absorbing US$ 461 million from the domestic foreign exchange market. According to the latest monetary authority report, the bank did not sell any US dollars during the month, signaling a clear strategy to strengthen Sri Lanka’s foreign reserves and stabilize the country’s external financial position.
These February transactions follow a similar trend observed in January 2026. During that month, the Central Bank purchased US$ 209.8 million while selling US$ 9.5 million in the domestic foreign exchange market. This resulted in a net purchase of US$ 200.3 million in January, indicating a steady reserve accumulation strategy through active currency market operations.
When the figures for January and February are combined, the Central Bank has absorbed a total net amount of US$ 661.3 million from the domestic forex market during the first two months of 2026. Analysts say this aggressive reserve buildup reflects a deliberate effort to strengthen Sri Lanka’s economic resilience following recent financial challenges.
As a result of these dollar purchases, Sri Lanka’s official reserve assets have climbed to approximately US$ 7.28 billion by the end of February 2026. The increase highlights the Central Bank’s ongoing strategy to improve financial stability, meet external debt obligations, and restore confidence in the Sri Lankan rupee and the national financial system.
