The Sri Lankan Rupee came under further pressure today as the selling rate of the US Dollar rose to Rs. 329.92, marking its highest level since December 27, 2023.
According to exchange rate data released by the Central Bank of Sri Lanka, the rupee has depreciated by 3.6% against the US Dollar between January 1 and May 8, 2026.
The US Dollar had remained fixed at Rs. 202.99 until March 7, 2022, but following the decision to float the currency on March 8, 2022, the exchange rate rose sharply, reaching Rs. 377.49 by May 2022.
Subsequent policy measures by the Central Bank helped stabilize the rupee, bringing the dollar rate down to Rs. 328.77 by the end of 2023, with the lowest recorded rate of Rs. 294.49 in December 2024.
Despite that recovery, the rupee has again weakened in recent months amid global economic uncertainty and increased demand for US dollars.
Nandalal Weerasinghe said exchange rate adjustments under the country’s monetary policy framework are a normal occurrence and noted that the current depreciation is largely driven by external factors such as a stronger US dollar and weaker regional currencies.
He also pointed out that currencies in countries like India, the Philippines, and Thailand have similarly come under pressure despite interventions by their respective central banks.
Economic analysts at the Advocata Institute said the ongoing conflict in the Middle East has contributed to higher global demand for US dollars, further straining the rupee.
They also noted that volatility in global crude oil markets and rising shipping costs have added additional pressure on the exchange rate.
Analysts warned that continued depreciation of the rupee could increase import costs while potentially boosting export earnings, but may also worsen Sri Lanka’s foreign debt repayment burden.
