The Central Bank of Sri Lanka says that the amount of official reserve assets in Sri Lanka has decreased by 4.4 percent, Central Bank data shows.

The Central Bank said that the country’s official reserve assets were 3,765 million dollars last July and it has decreased to 3,598 million dollars in August

Sri Lanka is staring at an external debt of US$50 billion (S$69 billion) with reserves drying up and has already hit the currency crisis.

Under this set up the country seems to be heading towards another debt default as it ha sto service multi national agency debt running billions of dollars.