Deputy Minister of Finance Dr. Anil Jayantha Fernando told Parliament that the Sri Lankan rupee has depreciated by 4.8% against the US dollar amid rising global uncertainties and external pressures.

Addressing Parliament, the Deputy Minister said increasing global instability and mounting pressure on foreign exchange markets during 2026 had contributed to the weakening of the rupee against the US dollar and other foreign currencies.

“Particularly during 2026, rising pressures and growing global uncertainties have created pressure for the rupee to depreciate against the US dollar and other foreign currencies. During the first two months of this year, the Sri Lankan rupee had appreciated continuously on a monthly basis. However, following the outbreak of the Middle East conflict, emerging pressures in the external sector led to a 4.8% depreciation against the US dollar,” he said.

Dr. Fernando noted that currencies in several other countries in the region had depreciated even further.

“The US dollar has strengthened significantly against other foreign currencies during this war situation. That is why Sri Lanka’s depreciation stands at 4.8% compared to other countries in the region,” he said.

He further stated that heightened global uncertainty and increasing risk aversion in international financial markets due to the Middle East conflict had strengthened the US dollar globally.

The Deputy Minister also pointed out that rising global crude oil prices had increased Sri Lanka’s expenditure on crude oil and gas imports.

In addition, he said the ongoing conflict had negatively impacted the tourism industry, creating further challenges for Sri Lanka’s tourism sector.