The Hon. (Dr.) Anil Jayantha - Minister of Labour and Acting Minister of Finance, Planning and Economic Development

¶ 01 Hon. Deputy Speaker, the Reply to the Question raised by the Hon. Ravi Karunanayake on 12 September 2025 under Standing Order No. 27(2) is as follows:

¶ 02 US$7.2 billion of Gross Official Reserves by end‑December 2025 is the IMF projection for Sri Lanka. Under the IMF‑EFF Programme, achieving that Gross Official Reserves level is not a quantitative or continuous performance criterion. The applicable reserves target is Net International Reserves (NIR), i.e., Gross Official Reserves minus reserve‑related liabilities, with adjustments under the Technical Memorandum of Understanding.

¶ 03 NIR targets at end‑June and end‑December each year are monitored at reviews. Sri Lanka already achieved the end‑December 2024 NIR target comfortably through substantial net purchases of foreign exchange from the domestic market. Based on current net purchases, Sri Lanka is on track to achieve the end‑June and end‑December 2025 NIR targets.

¶ 04 Accordingly, the specific Answers are:

¶ 05 1. US$7.2 billion is an IMF projection, not a compulsion under the EFF. By end‑August 2025, the Central Bank absorbed over US$1.2 billion from the domestic forex market to build Gross Official Reserves and will continue necessary mechanisms.

¶ 06 2. International Sovereign Bond yields declined recently, indicating improved investor perception and lower volatility. With macro indicators, this signals reduced uncertainties. The Government will explore options to strengthen investor confidence, leading to higher FDI and lower yields.

¶ 07 3. As indicated, the Central Bank is committed to building reserves considering tourism receipts, expatriate remittances and forex purchases where necessary.

¶ 08 4. There is no plan to restrict importation.

¶ 09 5. Changes in policy interest rates are taken by the Monetary Policy Board based on data and outlook. Presently, monetary policy is accommodative.

¶ 10 6. No such plan.

¶ 11 7. The Central Bank publishes Gross Official Reserves with details on the People’s Bank of China swap monthly. In addition, debt service payments are in the Annual Economic Review.

¶ 12 8. As stated, the US$7.2 billion is an IMF projection and not a performance criterion under the IMF‑EFF.

¶ 13 9. The Central Bank will continue prudent measures, considering evolving circumstances, to ensure its objectives are discharged.

¶ 14 Thank you.