The Sri Lanka rupee appreciated by 7.3% against the $ during the year up to 31 May, according to the Central Bank.

“Some depreciation pressure was observed in May 2024 despite the overall appreciation of the  Rupee so far in 2024,” CBSL added.

It said reflecting cross-currency movements, the Sri Lanka rupee appreciated against other major currencies, such as the euro, the pound sterling, the Chinese yuan, the Japanese yen, the Indian rupee, and the Australian dollar during the year up to 31 May. 

In line with the nominal appreciation, the real effective exchange rate (REER 24) has also appreciated during the month of April. Accordingly, REER 24 index has moved from 70.2 as at end December 2023 to 77.3 as at end April 2024, reflecting a loss in external competitiveness so far in 2024.

Mixed bag in April for external trade

CBSL buys $ 1.6 b of net forex;  gross reserves now at $ 5.5 b

Inflows to services sector remain robust