Rupee weakens 5.4% amid Middle East conflict pressures

The Central Bank of Sri Lanka announced a year-to-date depreciation of 5.4% for the Sri Lankan Rupee against the US Dollar as of the end of May 2026.

The decline reflects heightened external sector pressures following the escalation of the Middle East conflict since late February 2026, according to the official assessment from the Central Bank. The bank further noted that the depreciation aligns with currency trends observed in peer economies within the region during the same period.

Daily exchange rates reflected this shift as of 29 May 2026, with the US dollar buying rate at Rs 324.45 and the selling rate at Rs 334.24.