Sri Lankan rupee strengthens as dollar selling rate slips below Rs 340

The Sri Lankan rupee modestly appreciated against the US dollar on 3 August, with the dollar’s selling rate dropping below the Rs 340 threshold at commercial banks across the island. Rates reported by Seylan Bank, NDB Bank, People’s Bank, Commercial Bank of Ceylon and Sampath Bank showed selling prices ranging from Rs 339.75 to Rs 339.98, down from previous levels above Rs 340.

The move follows Sri Lanka’s broader currency recovery after a severe collapse during its economic crisis. Analysts link the improvement to higher foreign‑reserve balances from IMF programme disbursements, increased tourism revenue, tighter import controls and growing remittances. A stronger rupee reduces the cost of imported fuel, medicine and consumer goods and eases the burden on businesses with foreign‑currency debt. The Central Bank of Sri Lanka continues to intervene to maintain exchange‑rate stability as the country pursues recovery under its IMF Extended Fund Facility arrangement.