Story perspectives

Rupee Falls to 331/USD, Fuel and SME Costs Surge

5/17/2026

Summary

Rupee Slips

The rupee slipped past Rs. 325 per U.S. dollar.
Analyst Dhananath Fernando said dollar purchases raised the selling rate to Rs. 331.15 on May 15, 2026, and depreciation raises petrol and diesel prices, increasing electricity and water costs.
Prof. Ananda Jayawickreme (University of Peradeniya (UOP) Economics) warned the weaker rupee inflates petroleum and fertilizer import bills.
Prof. Ariyarathna Herath (UOP Head) said depreciation hurts SMEs by raising debt and input costs.

Summary

Economists Urge Restrictions

Economists Ananda Jayawickreme and Ariyarathna Herath urged temporary vehicle import restrictions to curb dollar outflows.
Herath urged the Ministry of Finance and Central Bank to release excess reserve dollars when needed.
They warned the 20.5% VAT on digital services could push consumers to unregulated alternatives, expanding the informal economy, citing rising illicit liquor consumption in rural areas.
Jayawickreme said expectations of further rupee depreciation could delay remittances, intensifying currency pressure.

History

Historical Context

In 2019 President Gotabaya Rajapaksa cut taxes and the central bank printed money, widening a balance-of-payments gap that the IMF flagged as unsustainable in 2021. The rupee then crashed to a record near 350 per U.S. dollar in March 2022, prompting a $2.9 billion IMF bailout and inflation that peaked at 70 % by June. Analysts warn a repeat could reignite debt and capital-flight risks.

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Rupee Slips

The rupee slipped past Rs. 325 per U.S. dollar.
Analyst Dhananath Fernando said dollar purchases raised the selling rate to Rs. 331.15 on May 15, 2026, and depreciation raises petrol and diesel prices, increasing electricity and water costs.
Prof. Ananda Jayawickreme (University of Peradeniya (UOP) Economics) warned the weaker rupee inflates petroleum and fertilizer import bills.
Prof. Ariyarathna Herath (UOP Head) said depreciation hurts SMEs by raising debt and input costs.

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