Srilanka, Sept. 14 -- The Governor of the Central Bank of Sri Lanka, Dr Nandalal Weerasinghe, deserves credit for placing the question of foreign-reserve accumulation within its proper broader context: reserves cannot be built sustainably at any cost. At the Reserve Management Conference 2026,(https://www.lankabusinessonline.com/2026/09/11/build-buffers-before-the-storm-central-bank-governor-tells-reserve-managers/), Governor emphasised that reserve accumulation must be supported by fiscal credibility, monetary credibility and sound external-sector fundamentals. These are important principles.
However, for Sri Lanka, the next step is to move from general principles to a more clearly defined policy framework. What, precisely, constitutes ad...