The Sri Lankan rupee has depreciated by 1.8% against the US dollar since the start of 2026, the Central Bank of Sri Lanka confirmed on Friday.
As of the close of trading on April 10, the buying rate stood at Rs. 311.79 per US dollar, with the selling rate at Rs. 319.26. The depreciation reflects sustained pressure on the external sector following the outbreak of the Middle East conflict in late February.
External pressures mount
The currency weakness comes amid multiple headwinds including elevated global oil prices driven by the Strait of Hormuz disruptions, reduced tourism receipts after arrivals fell 22% in early April, and continued uncertainty over the US-Iran ceasefire durability.
The CBSL has been actively managing forex markets, with dollar sales hitting a 31-month high as the central bank works to prevent a disorderly depreciation. Foreign reserves fell to $7 billion in March, a 3.5% decline.
However, worker remittances reached $814.8 million in March — a 17.5% year-on-year increase — providing some buffer against the external account pressures.
The rupee’s trajectory will depend heavily on the outcome of ongoing US-Iran negotiations in Islamabad and whether the Russia oil supply deal materialises to ease import costs.
Sources: Ada Derana
