The Central Bank of Sri Lanka (CBSL) has announced that the Sri Lankan Rupee depreciated by 5.4 per cent against the United States Dollar on a year-to-date basis as at the end of May 2026, reflecting mounting external sector pressures and global economic uncertainties.
According to the Central Bank, the depreciation follows the escalation of the Middle East conflict since late February 2026, which has triggered heightened volatility in global markets, increased energy prices and exerted pressure on emerging market currencies. The CBSL noted that the movement of the Sri Lankan Rupee is broadly in line with depreciation trends observed across several peer economies in the region during the same period.
As of 29 May 2026, the exchange rate stood at Rs. 324.45 for buying and Rs. 334.24 for selling against the US Dollar.
The Central Bank emphasised that Sri Lanka continues to operate under a flexible exchange rate regime, where the value of the Rupee is determined largely by market demand and supply conditions. Foreign exchange inflows from exports, tourism, remittances, foreign direct investment and external financing continue to play a crucial role in supporting currency stability.
While a weaker currency may increase the cost of imports and raise the local currency value of foreign debt, economists note that depreciation can also enhance export competitiveness, encourage domestic production and support long-term economic growth.
The CBSL reiterated that maintaining a competitive and market-driven exchange rate remains essential to strengthening Sri Lanka’s export sector, attracting investment and preserving external sector stability in an increasingly uncertain global environment.
