'Rupee depreciated by 8% in 2026,'states Central Bank

The Central Bank of Sri Lanka says the Sri Lankan rupee has depreciated by around 8% against the US dollar between January 1 and June 9.

In 2025 as well, the rupee fell by 5.6% against the dollar, while a slight appreciation of 0.2% was recorded in the first two months of this year.

This was revealed during a special briefing for Members of Parliament on the current economic situation, chaired by Central Bank Governor Dr. Nandalal Weerasinghe.

The Governor said the main reasons for the rupee’s decline were high import costs for fuel, vehicles and other goods, as well as reduced foreign exchange inflows from sectors such as tourism.

He also noted that exporters delaying conversion of dollar earnings into rupees, and importers increasing advance orders and dollar purchases in anticipation of further depreciation, had also contributed.

Outflows of foreign investment through government securities and the Colombo Stock Exchange were also cited as factors affecting the rupee.

The Central Bank further noted that several regional currencies also depreciated against the US dollar during the same period.

These include the Indonesian rupiah (7.9%), Indian rupee (6.2%), Nepalese rupee (6%), Philippine peso (4.6%), Thai baht (4.1%), and Malaysian ringgit (0.1%).