Sri Lankan Rupee Depreciates by 2.9% in April
The Central Bank of Sri Lanka (CBSL) has reported that the Sri Lankan Rupee (LKR) depreciated by 2.9% against the US Dollar by the end of April 2026.
According to the bank, the primary cause for this decline was the pressure on the external sector following the conflict in the Middle East that began in late February. This geopolitical tension led to increased volatility and demand for foreign currency.
Key Economic Indicators:
-
Official Reserves: At the end of March 2026, Sri Lanka’s gross official reserves stood at USD 7.0 billion. This figure includes the swap facility with the People’s Bank of China.
-
Reserve Fluctuations: Despite the Central Bank’s efforts to purchase foreign currency from the market during the month, the total official reserves saw a slight decline due to significant foreign debt service payments made during March.
-
Inflation Impact: The external pressures and energy price adjustments linked to the Middle East conflict also contributed to headline inflation (CCPI) rising to 5.4% in April, up from 2.2% in March.
The Central Bank continues to monitor market conditions closely to manage exchange rate stability amidst these ongoing global challenges.
