Export Collapse Jeopardises Sri Lanka’s Reserve Build-up Aim

Sri Lanka is projected to miss its 2025 export revenue target by about US$ 1 billion, owing largely to widespread domestic disasters and downturns in global demand. The shortfall ending the year at roughly US$ 17–17.5 billion instead of the planned US$ 18.2 billion threatens the island’s fragile effort to rebuild foreign‑exchange reserves under the IMF-supported bailout.

Authorities had hoped to raise gross official reserves to around US$ 7 billion by year-end. But reserve targets touted as essential for economic stability are in fact estimates and what really matters is net usable reserves, excluding conditional swap arrangements that international standards do not count as liquid assets.

Without strong export earnings, Sri Lanka’s ability to maintain a stable currency, meet import costs, and service external debt may come under renewed pressure.

Spread the love
Tags:

Leave A Comment