Sri Lanka, June 15 -- Sri Lanka's official foreign reserves have been overstated by approximately USD 1.4 billion due to the inclusion of a currency swap from China that does not meet international standards, a new report published by FactCheck.lk said.

The report, titled "Reservations on Sri Lanka's Reporting of Foreign Reserves", highlights that the discrepancy stems from the inclusion of a RMB 10 billion (roughly USD 1.4 billion) swap agreement with the People's Bank of China. Under the guidelines of the International Monetary Fund (IMF), only assets that are readily available and free from conditions can be classified as reserve assets. The Chinese swap, however, carries restrictions that disqualify it from being considered usable re...