The net foreign exchange reserves of the Central Bank of Sri Lanka have come down to a negative level. This is the first time such a situation has been reported in the history of the Central Bank.
Accordingly, the number of dollar reserves to be paid by the Central Bank has increased compared to the number of foreign reserves of the Central Bank.
Attempts are being made to curb the depreciation of foreign reserves through periodic borrowings and dollar exchanges from foreign countries and financial institutions, but this is only a short-term solution and on the other hand, such measures are having a detrimental effect on the country’s economy in the long run.
Due to the dollar crisis, some commercial banks have suspended the issuance of letters of credit for imports of goods and severely restricted the sale of dollars. As a result, even the importation of essential commodities has become a serious problem.