Central Bank Repays $1.1bn to RBI, IMF as Reserves Remain Stagnant
- CNL Reporter
- August 28, 2025
- Banking and Financial, News
- Central Bank
- 0 Comments
Sri Lanka’s central bank has repaid over US$1.1 billion in reserve-related debt in the year to March 2025, including US$900 million to the Reserve Bank of India (RBI) and US$209 million to the International Monetary Fund (IMF), official data show.
The repayments stem from loans taken during the 2019–2020 currency crisis, when the Central Bank of Sri Lanka (CBSL) borrowed US$2.2 billion through the Asian Clearing Union and obtained a US$400 million swap from the RBI. Since late 2023, CBSL has been settling these dues at a rate of about US$75 million per month, reducing the outstanding balance to US$1.3 billion by March 2025.
IMF obligations are also being repaid, with US$663 million still due from the 2015/16 crisis loans. Under the current IMF program, future repayments will fall directly on the Treasury, shifting risks to public finances.
Despite these settlements, Sri Lanka’s gross official reserves have failed to improve since October 2024, although net foreign assets turned positive after consistent dollar purchases. However, inflows have weakened, with CBSL buying US$256 million in May, dropping to just US$81 million in July 2025.
Analysts warn that without tighter monetary policy, Sri Lanka may struggle to meet both central bank and Treasury debt obligations, raising concerns of renewed financial instability.
