Rupee Likely to Depreciate Further Amid Declining Confidence in Economic Management, Says Harsha de Silva

06-Jun-2026

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The value of the Sri Lankan rupee is likely to decline further as confidence in the Government's economic management continues to weaken, according to Chairman of the Committee on Public Finance and Member of Parliament Harsha de Silva.

Commenting to the media on the recent appreciation of the US dollar and the depreciation of the rupee, he said that the exchange rate in the parallel market had already exceeded Rs. 345, while the official rate stood at around Rs. 342 per US dollar.

He noted that currency markets are driven largely by confidence and that public trust in the Government's ability to manage the value of the rupee has been steadily eroding.

According to de Silva, recent measures, including increases in interest rates, have provided only temporary relief. Thereafter, the rupee resumed its downward trend. He explained that importers have begun settling letters of credit that were opened before the introduction of new restrictions, resulting in increased demand for foreign currency.

He further stated that some Sri Lankans living overseas are delaying remittances in anticipation of a further depreciation of the rupee, while certain exporters are also postponing the repatriation of export earnings.

Such actions, he warned, could place additional pressure on the currency. Maintaining market confidence is essential for ensuring stability, he said, adding that the Government must act with greater transparency in financial matters. He also urged those advising President Anura Kumara Dissanayake in his capacity as Finance Minister to provide sound and effective policy guidance.