Borrowed, not built: what Sri Lanka's reserve figure hides
Sri Lanka, May 22 -- Sri Lanka's official foreign reserves stood at around 6.8 billion US dollars in April, a figure the government and the Central Bank routinely point to as a marker of returning stability. After the worst economic crisis in the country's history, a reserve number climbing back toward seven billion dollars is meant to signal that the worst is behind, that the buffers are being rebuilt, and that the economy is once again standing on solid ground. But two prominent voices are now questioning how much of that headline number is genuinely usable, and how much of it is simply borrowed money dressed up as reserves. Gold FM spoke to economic analyst Ravi Ratnasabapathy and former Finance Minister Ravi Karunanayake, and from two...
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