May 21, Colombo (LNW): Sri Lanka’s currency has come under renewed pressure after international financial analysts ranked the rupee among Asia’s weakest-performing currencies this month, raising fears over the country’s fragile economic recovery.
Recent market trends show the rupee losing ground rapidly against the US dollar, prompting warnings from economists that further depreciation could place additional strain on businesses, imports and household expenses in the coming months.
Economic experts say the weakening currency reflects ongoing uncertainty in global markets as well as domestic financial vulnerabilities. Professor Wasantha Athukorala of the University of Peradeniya cautioned that the sharp decline of the rupee over a short period could trigger wider economic instability if corrective action is delayed.
He noted that a prolonged fall in the currency’s value would likely increase the cost of imported goods and fuel, potentially driving inflation higher and placing additional pressure on consumers already coping with rising living costs.
Political figures have also weighed in on the issue. Parliamentarian Ravi Karunanayake criticised the government’s handling of monetary policy, arguing that authorities had yet to introduce an effective strategy to stabilise the rupee or restore investor confidence.
Former MP Piyal Nishantha called for bipartisan cooperation to address the economic challenges facing the country, stressing that political divisions should not prevent urgent measures from being implemented during a period of financial uncertainty.
Amid growing public concern, President Anura Kumara Dissanayake sought to reassure citizens by stating that the currency fluctuation was expected to be temporary. He urged the public to remain patient and resilient while the government worked to manage the situation and safeguard economic stability.
Financial analysts, however, believe the coming weeks will be crucial in determining whether the rupee can recover or whether further depreciation could deepen Sri Lanka’s economic difficulties.