Consumable dollar reserves drop to US $400 million
Sri Lanka’s foreign reserves have dropped to US $ 1.9 billion at the end of June, 2022, revealed the Central Bank of Sri Lanka (CBSL). Of the reserves is US $ 1.5 billion received from a credit facility by China and accordingly the amount consumable is limited to US $ 400 million, the country’s central monetary hub revealed.
Due to the current financial crisis, the CBSL has decided to further tighten its fiscal policies, raising the fixed deposit facility rate to 14.5 per cent and the fixed loan facility rate to 15.5 per cent.
Inflation is likely to further soar in the future, but the CBSL emphasised that it will be taking measures to control inflation to the best of its capability.
Meanwhile, the country’s economic growth has dropped to 1.6 per cent in the first quarter of 2022, mainly due to the energy crisis.