Sri Lankan Rupee Slumps 2.5% to 342.62 per Dollar as Oil Rally Drives 3-Year Low
Updated
Updated · Bloomberg · May 21
Sri Lankan Rupee Slumps 2.5% to 342.62 per Dollar as Oil Rally Drives 3-Year Low
3 articles · Updated · Bloomberg · May 21
342.62 per dollar marked the Sri Lankan rupee’s weakest level since March 2023 on Thursday after the currency fell 2.5%, making it the worst performer among Asian peers.
Rising oil prices pressured the rupee, with Sri Lanka’s import-sensitive currency hit as crude gains added strain to external payments.
More than 10% of the rupee’s losses against the dollar have come since the Iran war began in late February, underscoring how the conflict’s energy shock is feeding through to local markets.
As its currency hits a historic low, can Sri Lanka finally break its devastating cycle of economic crisis?
With the Iran war crippling its economy, what is Sri Lanka's survival plan beyond international bailouts?