Sri Lankan central bank takes emergency measures as FX crisis deepens
Central bank will securitise remittances to fund reserves, but statement hints at steep fall in inflows
Sri Lanka’s central bank said it would securitise remittance payments from abroad to fund its reserves, as the country’s foreign exchange crisis grows.
In May, the Central Bank of Sri Lanka ordered lenders to convert 10% of the foreign remittances they received into domestic currency. On November 12, the CBSL announced it would securitise those foreign currency receipts “to raise medium-term foreign currency financing”.
The central bank announced it had foreign reserves of $3.55 billion at the
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