Sri Lanka must build foreign reserves before next crisis, Central Bank Governor says

Sri Lanka must maintain adequate foreign exchange reserves to withstand future external shocks and growing geopolitical uncertainty, Central Bank Governor Dr Nandalal Weerasinghe said.

Speaking at the Reserves Management Conference 2026 in Colombo, Weerasinghe said reserves should be built during periods of economic stability rather than only when a crisis appears imminent.

He said rising geopolitical tensions and external economic shocks could quickly affect vulnerable economies such as Sri Lanka, making strong financial buffers increasingly important.

Weerasinghe recalled that Sri Lanka’s reserves fell to critically low levels during the 2022 economic crisis, leading to restrictions on essential imports, difficulties in servicing foreign debt and severe pressure on the rupee.

He said the crisis demonstrated the need to prepare for shocks before they materialised.

Strengthening reserves should therefore remain a central part of Sri Lanka’s macroeconomic management as the country seeks to preserve external stability, meet foreign obligations and ensure continued access to essential imports during future crises.