The Governor of the Central Bank of Sri Lanka Dr. Indrajit Coomaraswamy handed over the first copy of Central Bank’s Annual Report - 2017 to Minister of Finance and Mass Media Mangala Samaraweera today (Apr. 26) at the Treasury.
Secretary to the Treasury Dr. R. H. S. Samaratunga, Senior Deputy Governor Dr. P. Nandalal Weerasinghe were present at the occasion.
The Annual Report noted that the stabilization policy measures taken by the Central Bank and the government in the past two years resulted in a number of notable improvements, although real economic growth faltered and recorded a multi-year low during 2017.
Several measures were introduced to deepen and develop the domestic foreign exchange market further during the year.
Such measures helped the Central Bank to purchase a significant amount of foreign exchange from the domestic market without creating excess volatility in the exchange rate while facilitating a market-based exchange rate aligned with macroeconomic fundamentals.
According to the CBSL’s Annual Report, the gross official reserves increased to US dollars 8 billion by end 2017 with an accompanying qualitative improvement.
The overall balance of the balance of payments (BOP) recorded a surplus of US dollars 2.1 billion in 2017 after two years of deficits,
It said that the Sri Lankan rupee depreciated against the US dollar by 2 percent during the year, while the real effective exchange rate indices also depreciated, raising the competitiveness of the currency.