Sri Lankas foreign reserves took a 2.2 percent dip in February, slightly above a 5.7 percent drop in January 2004, according to latest data released by the Central Bank.
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Officialrnor Central Bank reserves slipped to US$ 2,277.5 mn, while total reserves, whichrnalso includes private holdings, rose 4.
9 percent to US$ 3,374.2 mn.
SrirnLanka has to boost reserves steadily by allowing the rupee to float, accordingrnto the agreement with the International Monetary Fund.
rn| rn External Financern | rn rn 2004 rn * | rn rn 2003 | rn rn % Change rn | rn |||
| rn rn | rn rn rn | rn rn rn | rn rn rn | rn rn End Feb. | rn rn End Dec. rn | rn rn rn | rn
| rn External rn Assets | rn rn | rn rn | rn rn | rn rn rn | rn rn rn | rn rn rn rn | rn
| rn Total rn Reserves (a) | rn rn | rn rn US$ mn | rn rn | rn rn 3,374.2 rn | rn rn 3,218.1 rn | rn rn 4.9rn rn | rn
| rn rn | rn rn rn | rn rn Rs.rn mn | rn rn rn | rn rn rn 333,977.5 rn | rn rn rn 311,313.7 rn | rn rn 7.3 rn | rn
| rn Gross rn Official Reserves rn | rn rn US$rn mn | rn rn rn | rn rn rn 2,277.5 rn | rn rn rn 2,329.0 rn | rn rn -2.2 rn | rn |
| rn | rn rn | rn rn Rs. mn | rn rn | rn rn 225,429.8 rn | rn rn 225,304.3 rn | rn rn 0.1rn rn | rn
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Inrn2004, the rupee remained strong, gaining 0.1 percent against a weak dollar thanrnoriginally envisaged under the IMFs PRGF programme.
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Thernagreement has been in limbo since December, because the government was unable tornimplement key reforms, due to political instability.
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Inrnthe last few months, fiscal targets have also showing signs of going awry, withrnthe government subsidising a range of goods, including petroleum, wheat flourrnand sugar, in the run up to the general election.
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-LBOrnNewsdesk:rnLBOEmail@vanguardlanka.com
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