The main reason for the depreciation of the Sri Lankan rupee this year is the crisis situation in the Middle East region and the resulting increase in global oil prices, said Central Bank Governor Dr. Nandalal Weerasinghe.
At a media briefing held today (18), the Central Bank Governor stated that the rupee has been under pressure with the increase in foreign exchange requirements for oil imports.
He pointed out that the Sri Lankan rupee has depreciated by 4.8 percent in 2026, while the Indian rupee has depreciated by 6.4 percent, the Nepalese rupee by 6.2 percent and the Indonesian currency by 5.2 percent.
Accordingly, this is not a situation limited to Sri Lanka alone, but is part of a global economic shock that has affected many countries that are heavily dependent on oil imports. The Central Bank Governor also emphasized that the Sri Lankan rupee depreciated sharply in 2022 due to specific economic problems within the country, and the current situation is different and related to the pressures on the international market.
The Central Bank Governor further stated that it is not correct to conclude that a country’s economy has collapsed based solely on changes in the exchange rate.