Thursday, August 11, 2022

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More dollars pour into CB’s fund for essential imports 

More dollars are pouring into the fund set up by the Central bank to collect a few dollars more for the use of the country’s essential imports due to the rapidly dwindling of its foreign reserves.   

Though Sri Lanka foreign exchange reserves fluctuated substantially in recent months, it tended to decrease through the April 2021 – March 2022 period ending at US$ 1,938.7 million US dollars last month.

Foreign reserves at $1.9 billion are about 1 months of imports. Of this about $1.6 billion is from a Chinese swap. Central Bank without reserves can float the currency and suspend convertibility.

The Central Bank has received $ 37,000 in humanitarian donations from overseas following a personal appeal for the same by new Governor Dr. Nandalal Weerasinghe.

As of 27 April, the amounts included $ 20,114.12, 11,729.25 sterling pounds, 1,967 euros and 100 AUD. In the previous week, the amounts stood at $ 15,809.77, 10,657.70 pounds and 467 euros.

The funds had been received to four of the six accounts published to the public by the CBSL. They are Deutsche Bank Trust Company Americans Account No. 04015541; Bank of Ceylon (UK) Ltd., Account No. 88001249; ODDO BHF Bank, Frankfurt Germany Account No. 0000739854 and Reserve Bank of Australia Account No. 81736-4. The other two designated accounts are HSBC London Account No. 39600144; MUFG BANK, Tokyo Account No. 653-0407895.

CBSL Governor Dr. Weerasinghe told a media conference on Friday that donations will be used to source essential medicines.

In his international appeal in mid-last month, the Governor said currently Sri Lanka is facing social, economic and financial distress creating hardships to its people due to the long-lasting impact of the COVID-19 pandemic, global political imbalances and macroeconomic imbalances of the country. 

The authorities are taking measures to address the fiscal crisis situation of the country, including taking steps to actively manage its debt obligations, finding immediate financial assistance from other nations and progressing at the discussions with the International Monetary Fund for a comprehensive program.The positive impacts of such measures will benefit the people only in the medium to long term. Therefore, urgent measures are needed to enhance the foreign reserve position of the country to meet its day-to-day essential imports including food, fuel and medicine.

In this background, the CBSL welcomes the communications made by the Sri Lankans living abroad, expressing their willingness to support the motherland at this crucial juncture by donating much needed foreign exchange to the foreign reserves of Sri Lanka.

The well-wishers may make foreign exchange transfers to the following accounts maintained at respective banks under the beneficial ownership of CBSL, and CBSL assures that such foreign currency donations will be utilised only for the purpose of importation of essentials such as food, fuel and medicine.

Well-wishers are also requested to send an image of the payment confirmation to [email protected] for reconciliation purposes, and any enquiries can be made through the same email address. Upon verification, each payment will be acknowledged by email.

In order to maintain the transparency of collection and utilisation of such foreign currency resources, a Committee consisting three members from CBSL has been appointed.
The Committee will publish the financial statements of the foreign currency funds received from the well-wishers into the said accounts on a quarterly basis via the official website of CBSL, while the receipt and utilisation of funds of these accounts will be subject to periodic independent audit.

Any inquiries can be made through email to [email protected] or by sending a message to WhatsApp on +94 76 831 5782

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