January 08, Colombo (LNW): Sri Lanka closed 2025 with a notable strengthening of its external buffers, as official reserve assets rose to US$ 6.83 billion in December, marking a month-on-month increase of just over 13 per cent, data released by the Central Bank of Sri Lanka show.
The improvement reflects continued inflows and tighter macroeconomic management following a prolonged period of financial stress.
Foreign currency holdings accounted for the bulk of the reserves, reaching approximately US$ 6.73 billion by the end of December. Central bank figures also indicate that gross official currency reserves had been hovering just below the US$ 6 billion mark in the preceding month, underlining the steady upward trend seen towards the close of the year.
A significant portion of the reserve position includes funds obtained through a bilateral swap arrangement with the People’s Bank of China, valued at around US$ 1.4 billion.
However, the central bank has reiterated that access to these funds remains subject to specific conditions, limiting their immediate usability for general balance-of-payments support.
Commenting on the broader economic outlook, Central Bank Governor Dr. Nandalal Weerasinghe said the country is poised to maintain its recovery momentum. Building on gains achieved over the past two years, he noted that economic growth is projected to settle in the range of 4 to 5 per cent in 2026, supported by improved stability, gradual investment revival and strengthening external accounts.
