The Sri Lankan Rupee has experienced significant and sustained volatility against the US Dollar and other major foreign currencies since April 2026, reaching unprecedented levels not seen in recent years. The Central Bank of Sri Lanka (CBSL) reported a 2.9% depreciation against the US Dollar in the first four months of 2026 alone.
The downward trend began in April, with the dollar's selling price surpassing LKR 320 on April 20 and reaching LKR 323.26 by April 29. The depreciation accelerated in May, with the selling price hitting LKR 324.87 on May 7 and climbing to LKR 326.12 by May 12. This marked the first time the dollar's selling price had exceeded LKR 325 since January 2024.
Further weakening was observed on May 13, when the selling rate surpassed LKR 326.12, a threshold not breached since January 19, 2024. The buying rate also climbed to LKR 318.57, the highest since January 11, 2024. Later that day, the selling rate reached LKR 327.38 and the buying rate LKR 319.77.
By May 14, the US Dollar selling rate hit LKR 329.92 (the highest since December 27, 2023), with the buying rate at LKR 322.28. The depreciation intensified, with the selling rate reaching LKR 331.15 by May 15 (the highest since December 22, 2023), and the buying rate climbing to LKR 323.53 (a level not seen since December 5, 2023).
Towards the end of the third week of May, the Rupee saw a sharp decline. On May 18, the US Dollar's buying rate reached LKR 326.74 (the highest since March 20, 2023) and the selling rate LKR 334.26 (the highest since November 29, 2023). By May 19, the selling rate had surpassed LKR 338, reaching LKR 338.07, with the buying rate at LKR 328.23.
On May 20, the CBSL reported the US Dollar's buying price at LKR 332.08 and its selling price at LKR 342.70, representing a 1.37% increase in the dollar's selling price compared to the previous day. A leading state bank reported even higher rates, with the US Dollar selling at LKR 345.20 and buying at LKR 335.65.
The depreciation accelerated dramatically on May 21. According to the CBSL, the US Dollar selling price surpassed LKR 354, reaching LKR 354.03, while the buying price rose to LKR 342.63. This marked the lowest value for the Rupee against the Dollar since March 2, 2023, and a 1.25% increase in the selling price compared to the previous day. Commercial banks also reflected these highs, with some quoting a selling price of LKR 354.20.
A slight easing was observed on May 22, with the CBSL reporting the US Dollar buying price at LKR 342.67 and the selling price at LKR 353.17. Commercial banks saw selling prices ranging between LKR 349 and LKR 354.
The Rupee then experienced a significant reversal on May 27, with the US Dollar selling price falling below LKR 331 to LKR 330.81, and the buying price at LKR 320.40. This followed a period of sharp depreciation where the Rupee had hit record lows above LKR 354.
However, this recovery was short-lived. By May 29, the US Dollar selling price had increased again to LKR 334.24, with the buying price at LKR 324.45. This trend of weakening continued into June. On June 1, the selling price surpassed LKR 335, reaching LKR 335.70, and the buying price rose to LKR 325.97.
Further depreciation was noted on June 2, with the US Dollar selling price surpassing LKR 336 to LKR 336.60, and the buying price increasing to LKR 326.75.
As of June 3, the Sri Lankan Rupee has weakened further, with the US Dollar selling price surpassing LKR 337. The Central Bank of Sri Lanka's daily exchange rate report for June 3, 2026, recorded the US Dollar buying price at LKR 328.00 and the selling price at LKR 337.97.
Other major currencies have also seen significant shifts during this period:
* Sterling Pound: The selling rate reached LKR 446.78 by May 18, climbing to LKR 450.24 by May 29, and further to LKR 453.12 by June 1.
* Euro: The selling rate was LKR 390.12 by May 18, reaching LKR 390.50 by May 29, and LKR 392.41 by June 1.
The continuous weakening and subsequent volatility of the Rupee indicate ongoing economic pressures and challenges for Sri Lanka's financial markets.