September 8, 2022 (LBO) - Sri Lanka's foreign reserves dropped to US$1.7bn as at end August, as compared to US.
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8bn at the end of the previous month. Foreign reserves, excluding Chinese swap line, dropped to approximately US$200mn.
Despite the slow return to normalcy on the ground, the foreign reserve position is still in critical condition, where the government and banking system are still juggling dollar flows in and out.
The new President Ranil Wickremesinghe has made huge strides on the ground by alleviating fuel and cooking gas shortages, in addition to restoring near normal supply of electricity.
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However, as the reserve position indicates, the Sri Lankan economy is still on the precipice.