Former United National Party Deputy Leader and Parliamentarian Ravi Karunanayake has questioned the composition and sustainability of Sri Lanka’s reported foreign exchange reserves, accusing the Government of creating an inflated picture of the country’s reserve position.
Speaking in Parliament, Karunanayake noted that Sri Lanka’s official reserves had increased from around US$6.1 billion in September 2024 to approximately US$6.49 billion at present.
He questioned whether the increase represented a genuine strengthening of the country’s reserves, arguing that part of the buildup was achieved through six-month local currency swap arrangements.
He compared the practice to obtaining an overdraft from a bank while presenting it as an increase in savings.
Karunanayake also called for clarification on whether maintaining and building the country’s foreign reserves falls under the legal responsibility of the Central Bank or the Ministry of Finance.
He further sought information on the Government’s projected gross official reserves and net international reserves through 2029, the reserve targets agreed with the International Monetary Fund (IMF), and whether Sri Lanka intends to return to the international sovereign bond (ISB) market.
