Lanka reserves boosts from Indian currency swap

The currency swap deal with India has boosted Sri Lanka's gross official reserves to USD 7.4 billion, the country's Central Bank said here today.
The reserves are estimated to have been increased to US dollars 7.4 billion by April 30, 2015 mainly with the proceeds of US dollars 400 million from the currency swap agreement between Sri Lanka and India, the bank said.
The Central Bank observes that reserves are increasing since beginning of April 2015, reversing the declining trend experienced during the first quarter of the year.
Subsequently, gross official reserves are expected to increase further to a higher level during next few months with the expected proceeds of the balance portion of US dollars 1.1 billion from the currency swap agreement between Sri Lanka and India together with other regular investment inflows, the bank said.

The arrangement of currency swap was announced during the visit to Colombo by the Prime Minister Narendra Modi in March.
India continued to be the top source for tourists arrival in to the island, the bank said.

Tourist arrivals recorded a growth of 16.7 per cent, year on year to 1,65,541 in February 2015 from 1,41,878 in February 2014.
Earnings from tourism are estimated to have increased by 16.7 per cent to US dollars 263.5 million in February 2015, compared to US dollars 225.9 million in February 2014.
In February 2015 India topped the arrivals followed by China, UK, Germany and France accounting for about 94.2 per cent of tourist arrivals during the month.

Meanwhile, tourist arrivals increased by 18.0 per cent, year-on-year, to 1,57,051 in March 2015, raising the total number of tourists during the first quarter of the year to 4,78,838 which grew by 13.6 per cent, year-on-year.