The US dollar’s selling rate at commercial banks crossed the Rs.336 mark on Tuesday, the Central Bank of Sri Lanka’s daily exchange rate indicator showed, marking a fresh low for the rupee against the greenback.
The buying rate stood at Rs.326.75 and the selling rate at Rs.336.60 on Tuesday (02), the CBSL indicator showed. The previous day’s quotes were Rs.325.97 and Rs.335.70 respectively, leaving the rupee about 90 cents weaker on the selling side in a single session.
Rs.336 is the highest mid-rate the rupee has traded against the dollar this year. The currency had crossed Rs.330 at end-May and the CBSL’s Weekly Economic Indicators showed cumulative depreciation of 5.4% in the year to end-April with gross official reserves at $6.77 billion.
The continued depreciation comes against the backdrop of a fuel import bill that hit $886 million in April — the highest monthly bill recorded — and the first flip into a current account deficit for the year that the CBSL disclosed last week. The CBSL Governor warned on Monday that headline inflation could climb to 7% over the coming months if Middle East tensions and oil prices persist.
Sri Lanka’s Petroleum Corporation raised retail fuel prices on May 30 in a surprise revision, citing imported energy cost pressure. The Central Bank has not intervened publicly to defend a specific exchange-rate level, with Governor Nandalal Weerasinghe previously framing monetary policy as “broadly appropriate” through the volatility cycle.
