IMF, ADB to help prop up Sri Lanka’s forex reserves to a record $7 bn in 2025: Central Bank says

Sri Lanka's foreign exchange position is stable at present, with gross official reserves holding above US $6 billion throughout the year while the Central Bank anticipates additional foreign inflows in December reaching the target of $ 7 billion at the end of the year, Central Bank (CB) Governor Nandalal Weerasinghe disclosed.

Addressing the monetary policy review media briefing in Colombo on Wednesday, he said that the Central Bank expects additional inflows next month from multilateral organisations including the International Monetary Fund (IMF) and the Asian Development Bank (ADB), which would further bolster the reserve position.

According to the governor, the country would be closing 2025 with over $7 billion in reserves after surpassing the $6.1 billion target for the year 2024.

It depends on continued positive economic trends and successful disbursements from the IMF’s next tranche of $ 358 million, and $900 million from the ADB, he added.

Sri Lanka is scheduled to receive its next tranche of IMF funding next month, following the International Monetary Fund Executive Board's review on December 15. IMF sources confirmed the statement of the governor.

This tranche will be the fifth disbursement under Sri Lanka's EFF.

The approval for the funds comes after the IMF staff reached a staff-level agreement with the Sri Lankan authorities in October 2025 regarding the fifth review of the country's reform programme.

The CB has been a net buyer of foreign exchange from the domestic market throughout 2025, a practice that builds reserves.

A CB statement, announcing that benchmark interest rates will be unchanged, said strong inflows from tourism and workers' remittances have helped cushion the external current account, even as a widening trade deficit occurred due to increased imports.

Recent pressure on the Sri Lankan rupee has eased as foreign exchange liquidity improved. This indicates a more stable and managed exchange rate environment.

The opening of letter of credit for vehicle imports has come down in November compared to July and the import prices are also falling, Governor Weerasinghe revealed.