Sri Lanka’s foreign- reserves surged by 81% year-on-year in October
- 5opn1
- November 13, 2024
- Banking and Financial
- Sri Lanka’s foreign- reserves
- 0 Comments
Sri Lanka’s foreign-exchange reserves surged by an impressive 81% year-on-year in October 2024, reaching USD 6.5 billion due to the support of its IMF program, according to Fitch Ratings.
This boost in reserves is a significant development for the country’s economic stability, providing a stronger buffer against external shocks.
However, Fitch notes that Sri Lanka’s improved financial position could face a setback if the government resumes servicing its external debt, as the island nation’s credit rating remains in ‘Restricted Default’ (RD) status.
Foreign-exchange reserves are rising across the vast majority of rated Asia-Pacific (APAC) sovereigns in Fitch Ratings’ portfolio and, if sustained, will strengthen external buffers and support the credit profiles of many sovereigns across the region,
