Sri Lanka banks cut dollar balances, lends to foreign governments, firms

ECONOMYNEXT – Sri Lanka’s banks have raised more foreign currency deposits, cut market borrowings and increased fx loans and investments in the year to June 2025, a Financial Stability Report issued by the central bank said. Sri Lankan banks had forex balances of 2.9 billion US dollars in foreign institutions as of the end of 2Q 2024, down 790.2 million dollars from a year earlier. Domestic systemically important banks had balances of 1.4 billion US dollars and foreign banks 1.2 billion dollars, the report said. Foreign currency liabilities of banks had grown 7.6 percent to 13.3 billion dollars by end…

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