Governor Central Bank (CBSL) Ajith Nivard Cabraal said that rumours spread by some mischievous elements that Sri Lankan banks have been ordered by CBSL to forcibly convert balances in their customers’ Forex accounts are totally false.
“These are rumours spread by some mischievous elements,” he said.
The Central Bank on December 29 informed the public that (as announced on 22 December 2021) expected foreign currency inflows are forthcoming and with the receipt of recent inflows, the official reserves position has now reached around US dollars 3.1 billion and is expected to remain at such level by end of 2021, as well.
In addition, as articulated in the Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability, foreign currency inflows in connection with several other facilities that are under negotiation at present, are expected to be realized in the early part of January 2022.
The measures are taken by the Central Bank with a view to improving foreign exchange liquidity in the domestic market, such as the introduction of incentive schemes for workers’ remittances, and the rules covering the repatriation and conversion of exports proceeds are also augmenting official reserves.
The welcome robust recovery in the tourism sector and the strong performance in exports are further buttressing the external sector.
Government and the Central Bank are confident that the reserve position will remain at comfortable levels throughout the year 2022.
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