FINANCIAL CHRONICLE – According to Deputy Finance Minister Anil Jayantha, Sri Lanka’s currency is stabilizing due to the natural functioning of market dynamics, and he emphasized that depicting the rupee’s decline as an economic crisis is misleading.
His remarks come in response to concerns raised by opposition political factions and critics of President Anura Kumara Dissanayake’s administration, who have suggested that the depreciation of the rupee signals an impending economic crisis.
On May 21, the rupee’s exchange rate reached a nearly four-year low of 354 against the U.S. dollar.
Jayantha stated in a video shared with the media, “As market forces play out, the currency is gradually returning to its standard value. There is no economic crisis or underlying problems; such variations are normal in a market-driven economy.” He reassured that the rupee typically regains its balance quickly, advising against panic fueled by inaccurate or misleading narratives.
Following the recent low, the Central Bank’s buying rate for the rupee has fluctuated between 320 and 330, despite experiencing some depreciation in the current year.
He acknowledged that the ongoing conflict in the Middle East, coupled with rising fuel prices and heightened demand for foreign currency, contributed to temporary fluctuations in the dollar’s value. “These factors led to a swift increase in the dollar’s value over a week,” he noted.
However, he assured that appropriate measures have been implemented to manage the situation effectively. Additionally, due to the influx of dollars from exports, tourism, and remittances, the economy is receiving sufficient foreign currency. He attributed the recent fluctuations to the spike in demand.
Furthermore, he dismissed the opposition’s speculation that the rupee could plummet to rates of 370, 380, or 390, stating that such scenarios have not come to fruition. (Colombo/June 05/2026)
