Srilanka, Sept. 11 -- Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, states that maintaining an adequate level of foreign exchange reserves is not a luxury, but an essential component of macroeconomic stability.



Addressing the inaugural Reserve Management Conference 2026 of the CBSL, held in Colombo yesterday (10), the Governor said the economic crisis faced by Sri Lanka in 2022 had clearly and practically demonstrated the consequences of inadequate external buffers.



He said that when foreign reserves fall to critically low levels, the consequences extend beyond the Central Bank's balance sheets or the responsibilities of reserve managers.



"Imports become constrained, debt servicing becomes diffic...