- Over $ 1.3 b in inflows expected from IMF, ADB, WB in coming months
Sri Lanka is currently facing no internal economic crisis and the US Dollar has stabilised at around Rs. 330, Deputy Minister of Finance Anil Jayantha Fernando said on Friday (22).
Addressing a media briefing alongside Deputy Minister of Economic Development U.D. Nishantha Jayaweera, Fernando dismissed widespread concerns that the national economy was inching towards collapse.
“I can definitely say there is no internal economic crisis in Sri Lanka, and we are moving forward with stability. We can be affected by external global shocks, as everyone gets affected by a world war, but internally there is no crisis,” the Deputy Finance Minister asserted.
He was responding to recent concerns as global shocks and domestic policy adjustments sparked renewed anxiety. Fluctuations in the exchange rate, alongside the phased relaxation of the prolonged vehicle import ban, have raised public concerns regarding a potential return to economic instability.
On Friday, the official Central Bank of Sri Lanka (CBSL) indicative spot exchange rate for the US Dollar was Rs. 329.63. Across major commercial banks, the Telegraphic Transfer (TT) buying rate stood at around Rs. 342.63, while the TT selling rate was approximately Rs. 354.03.
Fernando emphasised that the economic climate at present was vastly different from the historic crisis experienced four years ago.
“First, I must state that the dollar appreciation and rupee depreciation in 2022 and the current situation are like the sky and the earth; they are two entirely disconnected situations. In 2022, the country was destroyed, and the exchange rate reflected that bankruptcy. But the current situation is not like that.
“Looking at 2025 and moving into 2026, history has recorded 2025 as the most stable year in terms of economic stabilisation, progress, and macroeconomic stability,” Fernando said.
He attributed recent pressure on the exchange rate to external global factors, including war conditions in the Middle East that had inflated the costs of oil, shipping, and insurance. Fernando acknowledged that the Ceylon Petroleum Corporation (CPC) had experienced a significant increase in its fuel import bill, which briefly pushed the exchange rate upwards.
“Now I have good news for the country. The mid-rate of the inter-bank foreign exchange market, which was around Rs. 350 yesterday, has come down to Rs. 330. The bidding rate asked by buyers is Rs. 327, and sellers are ready to sell at Rs. 332, making the mid-rate Rs. 330. People who love the country will see this as good news, but for a few opportunists, it is a blow to their business,” he added.
The Deputy Minister also took the opportunity to correct circulating misinformation regarding a massive influx of vehicle imports draining the country’s foreign reserves.
“On 15 May, we announced a structured surcharge for vehicle imports as an alternative policy, not a complete restriction, but false rumours spread that vehicle prices had gone up by 50%. Rumours claimed 4,000 vehicles were brought in, with 3,500 going to one company. I state responsibly that exactly 1,782 vehicles were brought in on 15 May. This is official data provided by the Finance Ministry and the banking sector,” he claimed.
“On 27 May, the International Monetary Fund (IMF) Board of Directors is set to release two tranches at once. We have strong confidence that we will receive that $ 700 million. The Asian Development Bank (ADB) will provide about $ 480 million this year, and the World Bank will provide about $ 150 million by late June, alongside another $ 50 million from related institutions,” the Deputy Minister said.