In May 2026, the Central Bank of Sri Lanka reportedly sold over 223.3 million USD in domestic foreign exchange. During the same period, it had purchased USD 12 million, with the net amount of USD sold standing at USD 211.3 million. This marks the largest USD sale conducted by the CBSL since 2024.

The scale of the intervention is significant, as the amount sold in May 2026 exceeds the total USD sales for the entire years of 2025 (USD 205.3 million) and 2024 (USD 183 million). The outflow also represents a sharp reversal from the previous two years, when the central bank was a major net purchaser.

2026 also began with the CBSL aggressively purchasing dollars in the market. In January 2026, the Bank sold only $9.50 million, and no USD sales occurred in February 2026.

However, with the start of the Middle East conflict, the downward pressure exerted on the LKR forced the CBSL to begin selling dollars back into the market. The CBSL also reported that the year-to-date depreciation of the Sri Lankan rupee against the USD reached 7.8% as of 6th June 2026.