Sri Lanka’s foreign reserves up 3.4-pct in Oct 2026; CB buys dollars

EconomyNext reports that foreign reserves totalled $7.086 billion at the end of October 2026, compared with $6.851 billion at September’s close, an increase of 3.4%. Newsfirst and Newswire also put October reserves at approximately $7.1 billion, with Newsfirst reporting that the total exceeded $7 billion.

EconomyNext says the Central Bank bought $191.3 million net in foreign currency during October. It reports that net purchases for January through October amounted to $1.7401 billion, following $2 billion in net purchases during 2025.

EconomyNext reports that analysts regard the Central Bank’s $8 billion reserve goal for year-end as achievable, with funding expected from the IMF and other multilateral institutions in the last quarter of 2026. It says the reserve drive is linked to commitments under Sri Lanka’s $3 billion IMF programme and the need to repay bilateral and multilateral debts.

EconomyNext reports that the Central Bank was a net seller of more than $211 million in May, the first such monthly result in 22 months, as the rupee came under strong downward pressure. It attributes the pressure to an unusually costly fuel import bill after escalation in the Middle East and continued dollar demand for vehicle imports. EconomyNext says the rupee strengthened over the following two months, then weakened in September and October.

EconomyNext reports that the Central Bank increased its Overnight Policy Rate in May amid the currency’s depreciation. It says repayments to sovereign bondholders are due to start in April 2028, and describes reserve rebuilding as part of efforts to meet external obligations and support macroeconomic stability after Sri Lanka exited sovereign default through a near-finalised debt restructuring and obtained an IMF Extended Fund Facility.