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Sri Lanka’s central bank buys US$55mn in October 2025, returns some : analysis

ECONOMYNEXT – Sri Lanka’s central bank has bought only 45.5 million US dollars from forex markets in October 2025, as private credit surged, amid excess liquidity and lower interest rates, driving imports, official data shows The central bank has bought 1,461 million US dollars up to October 2025, compared to 2,061 million US dollars, last year. Analysts had warned that due to insufficient deflationary policy, the central bank will not be able to retain the dollars that it bought, keeping excess liquidity high and driving up private credit. The only deflationary policy in 2025 came from Treasury coupon payments on…

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