Dollar Appreciation Does Not Indicate Economic Crisis, Says Deputy Finance Minister Anil Jayantha

06-Jun-2026

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Deputy Finance Minister Anil Jayantha Fernando has stated that the recent appreciation of the US dollar does not signify that Sri Lanka is heading towards another economic crisis, urging the public not to be misled by false and misleading propaganda.

Responding to questions regarding the strengthening of the dollar and the depreciation of the rupee, he explained that the current fluctuations in the rupee are linked to global external factors, including developments in the Middle East region. As a result, demand for US dollars, particularly for imports, has increased in the market.

He noted that an economy in crisis would typically experience shortages of goods, disruptions in production, labour unrest, and an inability on the part of the Government to raise funds for expenditure. No such severe conditions currently exist in Sri Lanka, he said.

According to the Minister, export earnings, tourism revenue, and foreign worker remittances continue to rise. However, the recent increase in the exchange rate was caused by a temporary surge in demand for dollars exceeding available supply.

He also pointed out that the approximately US$695 million recently received from the IMF has strengthened the country's foreign reserves and contributed significantly to external sector stability.

Although the dollar temporarily exceeded Rs. 350, prompt policy interventions by the Central Bank helped bring it back to around Rs. 330. While a slight increase has been observed in recent days, he expressed confidence that the market would gradually regain stability.

The current situation, he emphasised, is merely a temporary market adjustment rather than an economic collapse, and the public should refrain from panic or making hasty decisions based on rumours.