The Central Bank of Sri Lanka (CBSL) announced that the Sri Lankan Rupee (LKR) depreciated by 5.4% against the US Dollar on a year-to-date basis as of the end of May 2026.

In its official assessment of the currency's performance, the Central Bank stated that this decline reflects heightened external sector pressures following the effects of the escalation of the Middle East conflict since late February 2026. The Central Bank further noted that this depreciation is in line with the currency depreciation trend that has been observed in peer economies within the region during the same period.

As of 29 May 2026, the daily exchange rates reflected this shift, with the US dollar's buying rate at Rs 324.45 and the selling rate at Rs 334.24.