Sri Lanka’s currency has come under renewed pressure, with the rupee emerging as Asia’s worst-performing currency this month amid rising global uncertainty and concerns over the country’s external sector.
According to the latest exchange rates issued by the Central Bank of Sri Lanka, the US dollar’s selling rate climbed to 354 rupees today, up sharply from 342.70 rupees a day earlier.
Economist Wasantha Athukorala warned that a rapid depreciation of the rupee could fuel inflation if authorities fail to stabilise the market. Former Minister Ravi Karunanayake criticised the government’s handling of the currency slide, while President Anura Kumara Dissanayake assured the country that the depreciation would be temporary.
Meanwhile, speaking in the Parliament, Deputy Finance Minister Anil Jayantha Fernando said Sri Lanka expects a US$700 million tranche from the International Monetary Fund on May 27, alongside further funding support from the Asian Development Bank and the World Bank to bolster foreign exchange reserves.
