Saturday Jun 06, 2026
Saturday Jun 06, 2026
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Finance Deputy Minister says recent exchange rate movement driven by market forces and external shocks
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Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando
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Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando yesterday rejected claims that the recent depreciation of the rupee reflects a broader economic crisis, describing such assertions as misleading.
Commenting on the impact of the ongoing Middle East conflict on Sri Lanka’s economy, Dr. Fernando said recent exchange rate volatility was primarily driven by higher global fuel prices and increased demand for foreign currency.
The rupee was quoted at Rs. 336.00/338.00 to the US dollar in the spot market on Friday, weakening from 336.90/337.50 the previous day. The currency depreciated on each trading day during the week. On Monday, the USD/LKR spot rate closed at Rs. 331.50/Rs. 332.50.
Dr. Fernando noted that the US dollar had strengthened over a short period, resulting in upward pressure on the exchange rate for about a week. However, he said authorities had taken the necessary measures to manage the situation. He said Sri Lanka continued to record adequate foreign exchange inflows through exports, tourism earnings and workers’ remittances, helping to maintain stability in the country’s external sector.
He emphasised that the recent movement in the exchange rate reflected normal market supply and demand dynamics rather than any underlying economic instability.
“The recent fluctuations in the value of the dollar should not be interpreted as a sign of an economic crisis,” Dr. Fernando said, adding that the country’s external sector remained supported by steady foreign currency inflows.
