Sri Lankan rupee continues freefall against the dollar
Posted on June 5th, 2026
Hiru News
The selling rate of the US dollar climbed to Rs. 342 today, up from Rs.340.25 noted yesterday, according to Central Bank data.
This recent movement pushes the total depreciation of the domestic currency to 8.3% for the current year.
Market records show the US Dollar previously hit a selling rate of Rs.354 on May 21, marking an 11.5% depreciation at that point.
Earlier in the year, the US Dollar started at a selling rate of Rs.313.4 on January 1.
The Central Bank attributed the recent depreciation pressure on the Sri Lankan rupee to rising import costs, particularly fuel, alongside a slowdown in tourism earnings.
The CBSL noted that Sri Lanka’s oil import bill, managed through the Ceylon Petroleum Corporation, has increased sharply within the first four months of the year, reaching nearly two-thirds of the total expenditure recorded for the entire previous year.
It further explained that while inward remittances have remained relatively stable, tourism inflows have weakened.
At the same time, import growth has outpaced export performance, adding pressure on the external sector.
The Central Bank emphasised that this imbalance between rising imports and slower foreign earnings has been a key factor influencing recent currency depreciation trends.