Sri Lanka’s foreign reserves fell to US$1.7 billion at the end of August, down from US$1.8 billion at the end of the previous month. Foreign reserves, excluding the Chinese swap line, fell to around $200 million.
Despite the slow return to normalcy on the ground, the country’s foreign reserve position remains critical, with the government and banking system juggling dollar flows in and out.
However, as evidenced by the reserve position, the Sri Lankan economy remains on the verge of collapse.