The 10 metric tonnes of gold Sri Lanka purchased from the IMF last Monday at a cost of USD 375 million has appreciated in value in the days following the acquisition, Central Bank Governor Ajith Nivard Cabraal said yesterday.

``Between our purchase date and now, gold was up by USD 10 an ounce,’’ he said. ``But for the problems in Dubai, the appreciation would have been more.’’

Sri Lanka holds its gold reserves in the Bank of England and the purchases from the IMF, which also holds its reserves in the Bank of England vaults, is credited to that account, the governor explained.

The gold purchase is part of the strategy of diversifying foreign reserves from the traditional US dollars.