The US dollar selling rate against the Sri Lankan rupee rose to Rs. 329.9201 on Thursday, the highest level recorded since December 27, 2023, according to the Central Bank of Sri Lanka’s daily exchange-rate publication.
CBSL data showed the selling rate climbed from Rs. 327.3868 on Wednesday — a 26-cent move in a single session that takes the indicative bank rate within striking distance of the Rs. 330 mark. The last time the dollar traded above that threshold was December 27, 2023, when the selling rate stood at Rs. 330.38.
Other major foreign currencies, including the Sterling pound and the euro, also recorded increases against the rupee on Thursday.
Newswire attributed the weakening to continued global dollar strength linked to rising US Treasury yields and expectations of further US Federal Reserve rate hikes. The CBSL’s published rate is a daily indicative bank selling rate and runs notably above the spot interbank quote — the interbank market traded the rupee at 324.50/325.00 in midday Thursday dealings, having strengthened from a Rs. 326/327 close on Wednesday.
The persistent weakening trend through May has prompted the central bank to publicly attribute the depreciation to global rather than domestic factors, distinguishing the current cycle from the 45% domestic-driven slide of 2022. The Asian Development Bank has flagged that further rupee depreciation amplifies oil-import costs at a time when the Iran-related fuel premium remains elevated.
