The Sri Lankan rupee weakened further against the US dollar on Tuesday, with the Central Bank of Sri Lanka (CBSL) telegraphic transfer selling rate moving to Rs.342.08 from Rs.341.04 the day before, official data showed. The buying rate rose to Rs.332.38 from Rs.331.22 on Monday, Ada Derana reported.
In the interbank spot market the rupee was quoted at 338.00/10 to the dollar on Tuesday, weaker from 337.00/30 on Monday, EconomyNext reported citing dealers. Bond yields were broadly steady, with the 01.08.2030 maturity at 12.10/20 percent and the 15.06.2034 maturity edging up to 13.00/15 percent. An auction of Rs.140 billion in Treasury bills is scheduled for Wednesday.
The Tuesday CBSL fix continues a steady weakening that has now run for more than a week. The selling rate first breached Rs.340 on June 4 in the sharpest one-day fall of the cycle, with Seylan Bank and Sampath Bank leading commercial bank quotes, and unofficial Colombo market quotes touched Rs.345 within hours.
Public Security Minister Harsha de Silva on June 5 framed the depreciation as a passing fluctuation tied to Middle East crude pressure, insisting confidence remained intact. Deputy Finance Minister Anil Jayantha Fernando used similar language a day later, telling parliament the move did not signal a crisis.
EconomyNext data show the rupee has shed close to 8 percent against the dollar since the start of 2026. The Central Bank sold a net USD 211.3 million in May to lean against the depreciation, the second consecutive month of net dollar sales and a clear break from the 2025 build-up programme. Despite the interventions, gross official reserves grew 1.7 percent to USD 6,873 million by end-May on the back of People’s Bank of China swap proceeds and multilateral disbursements.
Foreign holders have continued to trim Sri Lankan government securities. EconomyNext recorded a fourth consecutive week of foreign bond outflows in the week to June 4, even after the Central Bank’s 100 basis point Overnight Policy Rate hike on May 26.
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