LKR Market Update
26 Mar 2026 • 00:43 GMT
The Sri Lankan rupee remains near 90-day lows against the US dollar, trading close to 0.003178. This represents about a 1.5% decline compared to its 3-month average of 0.003226. The currency has stayed within a narrow 2.4% range from 0.003178 to 0.003253, reflecting recent stability despite global uncertainties.
The US dollar overall has gained strength recently, supported by cautious investor sentiment amid geopolitical tensions, especially around the Middle East. The dollar’s resilience also stems from positive US economic data and expectations that the Federal Reserve may hold rates steady in upcoming meetings. Additionally, market expectations include nearly 70 basis points of easing in 2026, although recent political developments and policy signals continue to influence market sentiment.
For Sri Lanka, lingering dollar strength poses challenges, especially with the rupee’s ongoing depreciation in 2025. While the central bank has maintained key rates and aims for controlled inflation, the currency’s recent lows highlight the importance of monitoring global trends and local economic stabilisation efforts. Expect the LKR to remain vulnerable in the near term, especially if US dollar demand persists.
