Central Bank transfers some dollar reserves to Switzerland to tackle risk
- CNL Reporter
- May 3, 2025
- Banking and Financial
- Central Bank
- 0 Comments
Sri Lanka has shifted some of the Treasury foreign reserves which were earlier held in the United States into Switzerland in 2024 to manage risk, the central bank said.
Sri Lanka’s central bank has its own monetary foreign reserves and also manages Treasury (fiscal) foreign reserves coming mainly from foreign loans.
The accounts are operated under the name of Deputy Treasury Secretary (DST).“The part of DST’s US dollar funds held in US territory was transferred to Bank for International Settlements (BIS), Switzerland for the purpose of risk management in the year of 2024,” the central bank said.
The balance of the DST’s dollar account 2 was accounted separately and it was 106.11 million dollars by end 2024, the central bank said.
Proceeds of the current International Monetary Fund this time is going to the Treasury, which can be used to repay debt. In past programs, IMF loans were given to the central bank to replenish reserves lost after the central bank’s inflationary rate cuts or refinancing operations.
