May 11, Colombo (LNW): Sri Lanka’s official reserve assets recorded a notable decline in April 2026, falling to US$ 6.76 billion from US$ 7.03 billion reported a month earlier, according to the latest figures released by the Central Bank of Sri Lanka (CBSL).
The decrease of approximately US$ 267 million has pushed the country’s reserves back below the US$ 7 billion level, only two months after surpassing the milestone for the first time since August 2020. Economists view the drop as a reminder that the nation’s external sector remains under pressure despite recent signs of financial recovery.
The CBSL stated that the reserve figures continue to include funds obtained through the currency swap agreement with the People’s Bank of China, which has played a key role in supporting Sri Lanka’s reserve position in recent years.
In addition to the decline in official reserve assets, the country’s foreign currency reserves also weakened during April, falling from US$ 6.8 billion in March to approximately US$ 6.5 billion.
Meanwhile, the Sri Lankan Rupee has continued to face downward pressure in 2026, depreciating by around 3.6 per cent against the US dollar since the beginning of the year. Financial analysts attribute the weakening currency to ongoing import demand, debt servicing obligations, and fluctuations in global market conditions.
Despite the setback, monetary authorities maintain that reserve levels remain considerably stronger than those seen during the height of the country’s economic crisis, with efforts continuing to stabilise the financial sector and rebuild investor confidence.