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Composition of Sri Lanka's Gross Official Reserves
The reported gross official reserves as of February 2022 stood at USD 2,311 MN, out of which 98% (USD 2,242 MN) consisted of short-term swaps maturing within 12 months. Whilst the quantity of reserves is important it is equally necessary to consider the quality of reserves. Short term swaps and foreign investment in government securities are essentially short-term in nature, and portfolio investments in government securities are also volatile. In an ideal scenario, reserves should comprise largely of non debt creating inflows such as FDI and current account surpluses. Sri Lanka however has consistently run current account deficits in its balance of payments. The second best option would be long-term stable borrowings (such as ISBs) that have a significantly longer repayment duration than short term swaps or volatile portfolio investments. Such instruments provide a greater degree of stability and longevity for a country’s reserves.
Featured Insight
Composition of Sri Lanka's Gross Official Reserves
The reported gross official reserves as of February 2022 stood at USD 2,311 MN, out of which 98% (USD 2,242 MN) consisted of short-term swaps maturing within 12 months. Whilst the quantity of reserves is important it is equally necessary to consider the quality of reserves. Short term swaps and foreign investment in government securities are essentially short-term in nature, and portfolio investments in government securities are also volatile. In an ideal scenario, reserves should comprise largely of non debt creating inflows such as FDI and current account surpluses. Sri Lanka however has consistently run current account deficits in its balance of payments. The second best option would be long-term stable borrowings (such as ISBs) that have a significantly longer repayment duration than short term swaps or volatile portfolio investments. Such instruments provide a greater degree of stability and longevity for a country’s reserves.
Featured Insight
Composition of Sri Lanka's Gross Official Reserves
The reported gross official reserves as of February 2022 stood at USD 2,311 MN, out of which 98% (USD 2,242 MN) consisted of short-term swaps maturing within 12 months. Whilst the quantity of reserves is important it is equally necessary to consider the quality of reserves. Short term swaps and foreign investment in government securities are essentially short-term in nature, and portfolio investments in government securities are also volatile. In an ideal scenario, reserves should comprise largely of non debt creating inflows such as FDI and current account surpluses. Sri Lanka however has consistently run current account deficits in its balance of payments. The second best option would be long-term stable borrowings (such as ISBs) that have a significantly longer repayment duration than short term swaps or volatile portfolio investments. Such instruments provide a greater degree of stability and longevity for a country’s reserves.
Featured Insight
Composition of Sri Lanka's Gross Official Reserves
The reported gross official reserves as of February 2022 stood at USD 2,311 MN, out of which 98% (USD 2,242 MN) consisted of short-term swaps maturing within 12 months. Whilst the quantity of reserves is important it is equally necessary to consider the quality of reserves. Short term swaps and foreign investment in government securities are essentially short-term in nature, and portfolio investments in government securities are also volatile. In an ideal scenario, reserves should comprise largely of non debt creating inflows such as FDI and current account surpluses. Sri Lanka however has consistently run current account deficits in its balance of payments. The second best option would be long-term stable borrowings (such as ISBs) that have a significantly longer repayment duration than short term swaps or volatile portfolio investments. Such instruments provide a greater degree of stability and longevity for a country’s reserves.
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Decentralized Budget Programme - 2024 - Ministry of Finance (Circular No. MF/02/2023) (29/12/2023)
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF
Implementation of Recommendation No. (1) of the Cabinet Sub-Committee Report on National Energy Potentials, Strategies and Roadmap for the Next Decade - Ministry of Finance (Circular No. MF/05/2023) (04/05/2023)
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF
Release of exchange for duty foreign travel and related expenses - Ministry of Finance (Circular No. MF/06/23/50/2023) (20/03/2023)
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
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Gazette No- 2278/21- Ministry of Finance - Import and Export (Control) Act No. 1 of 1969 (5/6/2022)
Official changes made to existing regulations/taxes or introduction of new regulations/taxes. This is with regards to items specified under the Finance Act.
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3rd Efficiency Bar Examination for Officers in Grade 1 of the Sri Lanka Inland Revenue Service
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF
Gama samaga pilisandarak 2022
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF
Decentralized Capital Budget Programme 2021
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF
Simplifying Systems and Processes to Fast track Implementation of Development Activities
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF
Adoption Of A Vibrant Mechanism To Receive, Evaluate And Approve Investment Proposals To Meet The Urgent Foreign Direct Investment Needs Of The Country And To Facilitate The Line Ministries &Government Agencies For The Expeditious Execution Of Such Proposals
A circular distributed by the Ministry of Finance to relevant persons/institutions. Examples of areas covered include establishing a Procurement Management Unit, sending nominations for foreign programs (internal), procedures for release of foreign currency for all official travels and related expenses and other matters relating to the Treasury.
Download as PDF