Sri Lanka central bank purchased USD 1.7 bln from the FX market to rebuild reserves as the rupee appreciated. USD 662 mln was bought in May to ease volatility, while the rupee’s value soared by almost 11%. The rupee’s recovery was supported by a USD 3 bln bailout from the IMF following a default. However, concerns loom over potential rupee risks due to eased import restrictions and impending debt repayments.