As a part of the
diversification of the external assets portfolio of the Central Bank of
Sri Lanka (CBSL) into various safe financial instruments, the CBSL has
been acquiring Gold from the international market over the past several
months. In fact, many central banks maintain a certain portion of its
external reserves in Gold, since Gold is one of the commodities which
provides an anchor for long term stability of reserve assets.
In keeping with this objective, the Central Bank recently acquired 10
metric tons of Gold from the International Monetary Fund. Through such
acquisition, the long-term stability of Sri Lanka’s external reserves
will be strengthened, since the Gold holdings will provide a stable and
long-term cushion against the impact of any potential volatility in
major international currencies and financial instruments, in
international financial markets.
The gross official reserves of Sri Lanka now exceed US dollars 5.2
billion, which is sufficient to finance 6.4 months of imports.
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