The gross official reserves were provisionally estimated at US dollars 4,400 mn as at end December 2023 including the People’s Bank of China (PBOC) swap equivalent to around US dollars 1.4 bn, which is subject to conditionalities on usability, according to the Weekly Economic Indicators report of the Central Bank.

This would mean that Sri Lanka had USD 3 billion in its foreign reserves at the end of last week without counting the Chinese swap.

Meanwhile, the Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 05th January 2024 decreased by 26 bps to 11.87 per cent compared to the previous week, according to the report.

It further stated that between 30.12.2023 to 05.01.2024, crude oil prices registered a volatile behaviour. Heightened tension in the Red Sea and the Gaza Strip and disruptions at a major oil field in Libya exerted some upward pressure on prices, while larger than expected increase in US’s fuel inventories capped the price increase. Brent and WTI prices increased slightly by USD 0.73 and USD 0.84 per barrel during the period under review.

The reserve money increased compared to the previous week mainly due to the increase in the deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a deficit of Rs. 88.188 bn by 05th January 2024, compared to a deficit of Rs. 105.986 bn by the end of last week.

By 05th January 2024, the All Share Price Index (ASPI) increased by 1.01 per cent to 10,761.6 points and the S&P SL 20 Index increased by 0.86 per cent to 3,094.7 points, compared to the index values of last week. The primary market yield rates of T-Bills and the secondary market yield rates of T-Bills and T-Bonds remained broadly stable during the week. The outstanding stock of T-Bills and T-Bonds held by foreigners increased by 0.87 per cent in rupee terms during the reporting week compared to the week before, the report stated.