CBSL absorbs $ 1.24 b from domestic market YTD Aug.

CBSL intervention in domestic forex market leads to net forex absorption in first eight months of 2025 USD/LKR bid-ask spread narrows, reflecting improved liquidity and market efficiency Interbank forex transactions rise, with forward volumes up 22% YoY

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THE Central Bank of Sri Lanka (CBSL) remained a net purchaser of foreign exchange from the domestic forex market during the first eight months of 2025, continuing the positive trend seen in 2023 and 2024, according to the Financial Stability Review 2025 released last week.

From January to August 2025, the CBSL absorbed $ 1.3 billion from the domestic forex market and injected $ 63.3 million, resulting in a net absorption of $ 1.24 billion. This compares with $ 2 billion recorded during the corresponding period in 2024.

Gross Official Reserves stood at $ 6,164.2 million at the end of August 2025, slightly above the $ 6,122.0 million reported at the end of 2024.