Tag: Central Bank of Sri Lanka

Sri Lanka end 2020 with $5.7 billion in FX Reserves

19Jan

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Economy, External Account

Sri Lanka end 2020 with $5.7 billion in FX Reserves

The Central Bank (CB) estimated the country's foreign reserves st $5.7 at the end of 2020, with an import cover of 4.3 months. "Amidst hostile global market conditions, the Government and the Central Bank continued to explore avenues of financial flows to the country, while discussions with domestic and foreign counterpartsin this regard have made notable progress," the CB said today. The CB expects that reopening the country for tourist arrivals under strict health guidelines could help improve external sector conditions in the period ahead.

Sri Lanka’s Worsening Credit Quality in the Household Sector Raises Concerns

7Jan

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Banking and Insurance, Economy, Finance and Leasing, Real-Estate

Sri Lanka’s Worsening Credit Quality in the Household Sector Raises Concerns

Sri Lanka's household sector credit quality continued to decline during the first half of last year signaling a plausible build-up of imbalances in the sector. The NPL ratio of the household sector has been rising since 2018 signifying a worsening of credit quality. The NPL ratio of the household sector rose to 20.2 percent by the end of 2020Q2 compared to 12.5 percent in 2019Q2 despite the moratorium granting relief measures for those affected by the COVID-19 pandemic, the Central Bank data indicated. The Bank cautioned on a high possibility of NPL levels rising significantly by the end of the moratorium period. Despite the banking sector is the main source of household sector debt, the non-performing loans (NPLs) were largely stemming from the non-bank financial institutio...