Sri Lanka’s Reserves Slip Slightly in January Amid Gold Gains

Date:

February 10, Colombo (LNW): Sri Lanka’s official reserve assets experienced a modest decline in January 2026, according to figures published by the Central Bank of Sri Lanka (CBSL).

The country’s reserves fell from US$ 6,838 million at the end of December 2025 to US$ 6,824 million by the close of January, representing a minor drop of 0.2 per cent.

Foreign exchange reserves, which make up the bulk of official holdings, decreased by 1 per cent, moving from US$ 6,747 million to US$ 6,680 million over the month.

Conversely, gold reserves recorded a substantial gain, rising sharply by 26.8 per cent from US$ 86 million to US$ 109 million, reflecting the Central Bank’s strategic accumulation.

The CBSL also highlighted that official reserves incorporate foreign exchange swap proceeds of around US$ 1.4 billion secured from the People’s Bank of China, though these funds carry certain usage restrictions. Analysts note that while the overall decline is slight, the increase in gold holdings provides some buffer against currency volatility.

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