The depreciation of the Sri Lankan Rupee during this year has been primarily driven by the ongoing crisis in the Middle East and the resulting increase in global oil prices, the Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe has stated.
Speaking at a media briefing held today (18), Governor Weerasinghe noted that rising foreign exchange requirements for oil imports have placed additional pressure on the rupee.
He further pointed out that in 2026, the Sri Lankan rupee depreciated by 4.8%, while other regional currencies have also weakened, including the Indian rupee by 6.4%, the Nepalese rupee by 6.2%, and the Indonesian currency by 5.2%.
According to him, this is not a situation unique to Sri Lanka, but rather a global economic shock affecting many countries that heavily depend on oil imports.
Dr. Weerasinghe also contrasted the current situation with 2022, stating that the sharp depreciation of the rupee at that time was due to domestic economic challenges specific to Sri Lanka, whereas the present depreciation is linked to external global market pressures.
He further noted that interpreting economic strength solely based on exchange rate movements is misleading, as currency fluctuations alone do not reflect the full state of an economy.
