Sri Lanka Rupee Slumps 7.9% as Central Bank Intervenes

The Sri Lankan rupee experienced significant depreciation against the US dollar in the first half of 2026, dropping by 7.9 percent to 336.66 rupees per US dollar by June 30, according to the Central Bank's Market Operations Report.

The Central Bank intervened in the domestic foreign exchange market, making net purchases of $556 million and accumulating reserves at opportune times, despite shifting to a net seller position in the second quarter.

Gross official reserves reached a post-crisis peak of $7.3 billion at end-February 2026 before dropping to $6.5 billion by end-June 2026.