2018 November Gross Official Reserves estimated at USD 7 Billion

Colombo (News1st): The Central Bank of Sri Lanka notes that as at the end of November 2018, Gross Official Reserves were estimated at USD 7 Billion, equivalent to 3.7 months of imports. Total foreign assets, which consist of gross official reserves and foreign assets of the banking sector, amounted to USD 9.7 Billion as at end November 2018, equivalent to 5.2 months of imports. According to the External Sector Report, the Overall External Sector deficit increased to USD 807 Million. Speaking to News1st COO of the Advocata Institute Dhananath Fernando noted that this will not be sustainable in the long run because to build up the reserves for the mounting debt repayments the government has to borrow from the international financial markets. He went onto note that borrowing money to build up the reserves will be very expensive due to the unhealthy situation of the system as well as the political instability. Earnings from tourism rebounded strongly with the start of the tourism season registering a growth of 18.2% in November and bringing in an income of USD 367 Million. Boosting the sector's earnings USD 3.9 Billion in the first 11 months. The Tourism sector is expected to continue its robust performance through 2019.