Official reserve assets topped the $ 7 billion mark at end-October, Central Bank of Sri Lanka (CBSL) data showed, as the monetary authority increased US dollar purchases from the domestic foreign exchange market.
Official reserves stood at $ 7.09 billion at end-October 2026, up from $ 6.9 billion a month earlier, while foreign currency reserves rose to $ 6.84 billion from $ 6.62 billion.
The $ 190 million increase in official reserves almost matches the $ 191.3 million the CBSL bought on a net basis during October, a month in which it made no sales.
Expected short-term outflows, covering the forward leg of currency swaps and loan servicing, amount to $ 5.75 billion, CBSL data showed. That is equivalent to 84% of foreign currency reserves and leaves about $ 1.09 billion free of near-term drains, with reserves covering committed outflows around 1.2 times. The forward leg is the side of a currency swap that falls due.
October’s $ 191.3 million net purchase was the largest since August but remained 67% below the record $ 579 million bought that month, and was nearly triple September’s $ 64.2 million. September’s figure was the smallest monthly purchase since the CBSL resumed buying in June with $ 70.5 million, after it sold a net $ 12.9 million in April and $ 211.3 million in May.
The rupee came under its heaviest pressure in that period after the conflict in the Middle East escalated in late February, with year-to-date (YTD) depreciation peaking at 7.9% at end-June. Purchases then accelerated to $ 348.6 million in July and the record $ 579 million in August, the highest single month since January 2025, as the rupee recovered and YTD depreciation eased to 7.8% at end-July and 5.5% at end-August.
September’s buying took net purchases for the first nine months of 2026 above $ 1.54 billion, against $ 2 billion for the whole of 2025. October’s addition lifts the 10-month total above $ 1.73 billion, leaving the CBSL within roughly $ 270 million of last year’s full-year figure with two months remaining.