The Sri Lankan rupee has lost 6.8 percent of its value against the US dollar in 2026, the Central Bank of Sri Lanka (CBSL) said in its latest External Sector Performance report.

The exchange rate stood at Rs. 332.61 per US dollar at the end of October 2026, compared with Rs. 309.99 at the end of 2025. That is a rise of Rs. 22.62 in the rupee cost of one dollar over ten months.

The Central Bank’s figures show the rate was Rs. 292.58 at the end of 2024, so the dollar has risen by about Rs. 40 over two years.

The report also shows a wider trade gap. The merchandise trade deficit was US$ 7.9 billion in January to September 2026, against US$ 5.2 billion in the same period last year. The monthly deficit narrowed to US$ 731 million in September, helped by stronger merchandise export earnings.

Gross official reserves stood at US$ 6.9 billion at the end of September 2026. The figure includes the swap facility with the People’s Bank of China.

Spending on foreign travel rose 62.4 percent in the first nine months of the year, to US$ 937.2 million from US$ 577 million a year earlier. In September alone it rose 64.9 percent, to US$ 122 million from US$ 74 million.

Total services outflows increased 36.7 percent in September to US$ 440.8 million, against US$ 322.4 million a year earlier. The services account surplus for the month fell 34.3 percent to US$ 119 million, and the cumulative surplus for January to September fell 22.3 percent to US$ 2.21 billion. The Central Bank attributed the decline mainly to higher payments for travel and air transport services, which grew faster than services inflows.

Background

The External Sector Performance report is a regular publication of the Central Bank. It sets out trade, services, remittances, reserves and the exchange rate, and is one of the main public sources on how Sri Lanka earns and spends foreign currency.

The merchandise trade deficit is the gap between what the country spends on imported goods and what it earns from exported goods. The services account covers items such as tourism earnings, shipping, air transport and travel by Sri Lankans abroad. A surplus in services helps offset the deficit in goods.

Gross official reserves are the foreign currency and other assets held by the Central Bank. The swap facility with the People’s Bank of China is counted within the reported figure, as the Central Bank’s report states.

What it means

A weaker rupee means more rupees are needed to buy each dollar. This can raise the local cost of imported goods and other dollar-denominated payments, including fuel, medicine, vehicles and overseas tuition fees.

For Sri Lankans abroad, each dollar sent home through banks now converts into more rupees than it did at the start of the year. Families who rely on remittances receive a larger rupee amount for the same sum sent.

For those planning foreign travel, the cost in rupees is higher than at the start of the year, while the Central Bank’s figures show that spending on travel abroad has grown sharply.