Sri Lanka Buys Gold
Better late than never.
Via GATA (h/t Liberty Pulse):
Sri Lanka's central bank on Saturday said it has been buying gold to diversify its reserves amid volatile currency markets, days after India announced it had purchased 200 tonnes of the precious metal.
Central Bank assistant governor Nandalal Weerasinghe declined to confirm analysts' estimates that the tropical island nation had purchased around 5 tonnes of gold.
"We have been observing that prices of gold have been going up so we have been strategically buying gold over the past several months as part of a reserve management process of diversifying our portfolio," he told AFP.
The price of gold hit a record high above $1,100 an ounce in London trading on Friday following a report that Sri Lanka had joined India in purchasing the precious metal.
Weerasinghe did not disclose from which sources the bank was buying the gold or at what prices. He gave no breakdown of how much of the country's more than $5 billion in foreign reserves were held in gold.