Sri Lanka Rupee depreciates by 1.6% against US dollar in 2026

The Sri Lanka rupee had depreciated by 1.6 per cent against the US dollar in 2026, the Central Bank of Sri Lanka (CBSL) has confirmed.

According to the CBSL, the buying rate of the US dollar was Rs. 311.76 while the selling rate stood at Rs. 319.31 at the end of trading yesterday (31).

The Central Bank noted that the depreciation of the Sri Lanka rupee against the US dollar is a reflection on the emergence of external sector pressures following the commencement of the Middle East conflict in late Feb 2026.

Meanwhile, the external current account recorded a surplus in February 2026, extending the trend observed since November 2025, and recorded a cumulative surplus of US$ 487 million during January–February 2026, the CBSL said.

According to the External Sector Performance - February 2026 report published by the Central Bank, the merchandise trade deficit widened on a year-on-year basis in February 2026. Further, during January-February 2026, the trade deficit widened to US$ 1.4 billion compared to US$ 1.1 billion in the corresponding period of 2025.

Vehicle imports, including both personal and commercial vehicles, amounted to US$ 194 million in February 2026, bringing cumulative vehicle imports to US$ 418 million during January-February 2026.

Meanwhile, gross official reserves (GOR), including the swap facility with the People’s Bank of China (PBOC), increased to US$ 7.3 billion at end February 2026. This was mainly driven by higher foreign exchange purchases by the Central Bank, despite continued external debt service payments, the CBSL added further.