Sri Lanka rupee fall was driven by higher imports, rising petroleum costs and slower tourism income, Central Bank Governor tells COPF.
Sri Lanka rupee fall was mainly driven by rising imports, especially petroleum, and slower tourism revenue, the Central Bank Governor has said.
The Governor made these remarks when senior Central Bank officials appeared before the Parliament Committee on Public Finance on Thursday, May 14, to discuss the latest economic developments following the escalation in the Middle East.
He said Sri Lanka’s oil import bill, mainly through the state-owned fuel retailer Ceylon Petroleum Corporation, had risen sharply during the first four months of the year.
According to him, the amount spent during that period had already reached nearly two-thirds of what was spent for the whole of 2025.
“At the same time, tourism has also slowed down. But remittances are doing okay so far. Although imports have increased significantly, exports have not performed to the same extent,” he told the COPF in Parliament when asked to explain the pressure on the rupee.
“That has exerted pressure and created a deficit in the foreign exchange market, and that is leading to depreciation of the currency,” he said.
Some analysts have also cited the lack of mopping up excess rupee liquidity in the market as another reason for the depreciation.
The rupee has fallen 4.5 percent through May 15 this year.
