Sri Lankan lawmaker Ravi Karunanayake has raised concerns in Parliament about the true composition and sustainability of the country's foreign exchange reserves, questioning whether headline figures are being artificially inflated through short-term domestic swaps ahead of the IMF program's December conclusion.

Legislator Ravi Karunanayake has questioned the government and central bank over the accuracy of foreign exchange reserve calculations, warning that official figures may not reflect the true amount of liquid currency available for import cover. Speaking in Parliament as Sri Lanka's International Monetary Fund program approaches its scheduled end in December 2026, Karunanayake sought detailed information on reserve composition and liabilities from forward contracts, comparing the current practice to taking an overdraft to artificially boost reserve numbers.

Official reserves have risen from approximately 6,100 million US dollars in September 2024 to 6,491 million US dollars currently. Karunanayake requested clarity on whether reserve creation falls under the statutory responsibility of the central bank or the Ministry of Finance, and called for projections through 2029 as well as information on agreed IMF targets. He also asked whether the government plans to return to the International Sovereign Bond market.

Additionally, Karunanayake challenged forward guidance issued by the Central Bank Governor on August 12, which ruled out policy rate increases for the remainder of 2026 despite changing conditions affecting inflation, currency stability, and capital flows. He argued that such predetermined commitments are inappropriate given the volatile nature of monetary policy operations. The legislator further requested transparency regarding the Central Bank's 2025 net profits and government remittances, and asked if authorities will activate the Active Liability Management Act to reduce debt servicing costs and support the rupee.