The Sri Lanka rupee, which remained relatively stable in the early months of 2026, has come under moderate depreciation pressure following the onset of the Middle East conflict, according to data presented in the Central Bank of Sri Lanka’s Monetary Policy Review for March 2026.

Central bank figures show that the rupee has depreciated by around 1.3 percent so far in 2026, with the exchange rate reaching approximately Rs. 314.2 against the US dollar by 25 March 2026.

This movement follows a period of relative stability at the start of the year, before global developments began to influence foreign exchange markets.

The data indicates that depreciation pressures intensified after the escalation of the Middle East conflict, reflecting broader regional and global trends. A comparative analysis of regional currencies against the US dollar suggests that Sri Lanka was not alone in experiencing currency weakness during this period.

According to the peer-country comparison, the Sri Lanka rupee recorded a 5.6 percent depreciation in 2025. In early 2026, the rupee showed a 0.2 percent appreciation during the period from end-February to end-March, but still registered a 1.6 percent depreciation from the end of 2025 to 25 March 2026.

Other regional currencies also faced similar pressures. The Malaysian ringgit showed a depreciation of 9.9 percent in 2025 and 1.6 percent so far in 2026. The Indonesian rupiah declined 3.6 percent in 2025 and 0.6 percent in 2026, while the Indian rupee weakened 4.7 percent in 2025 and 3.1 percent in the current year to date. The Thai baht, Philippine peso, Pakistan rupee, Bangladesh taka, Vietnamese dong, and Nepalese rupee also recorded varying degrees of depreciation, underscoring the region-wide impact of global uncertainties.

The Central Bank’s analysis highlights that the renewed pressures on the rupee largely coincided with heightened geopolitical tensions. Despite these challenges, the overall movement of the rupee in early 2026 has been moderate when compared with some regional peers.

ECONOMYNEXT – Sri Lanka expressed gratitude for Iran’s offer to supply oil in the event of Colombo requests, but said the country has no ship to explore the offer.

Iran’s Ambassador to Sri Lanka said on Monday (23) that the oil rich nation was ready to provide fuel and other necessary goods to Sri Lanka if it requests them as the island nation grapples with fuel shortages and expensive essential goods.

Already the country has implemented fuel rationing.

Nalinda Jayatissa, the Cabinet Spokesman and Minister of Media and Health, thanked them for the offer but said Sri Lanka is unable to accept it.

“A country owning a ship has the opportunity to buy Iranian oil. We don’t have that option. We are thankful for Iran’s offer,” he told the weekly cabinet media briefing.

“However, have already placed some ordered some crude and refined oil shipments. Tenders are already floated. We expect to receive these fuel shipments. Even today we are above to float a tender. As per tendered floated so far, we should have adequate fuel up until end April.

Sri Lanka has also been exploring to strike a government-to-government deal with Russia to buy oil and the Russian Deputy Energy Minister Roman Marshavin is expected to visit Sri Lanka to hold formal talks, Jayatissa said.

However, the Cabinet Spokesman did not respond when asked why Sri Lanka is not talking to the United States on supplying oil as it is main reason for the current oil prices shock while the U.S. is now in control of Venezuelan oil reserves.

Since the U.S./Israel attack on Iran, oil price have shot up around 35 percent in Sri Lanka and the island nation’s 22 million people are experiencing the trickle down impacts of the price increases including expensive transport and food.

The Families of the Disappeared organisation is set to submit a report compiled from its recent women’s conference to the relevant authorities, while calling for the establishment of an accountability mechanism to strengthen the search for missing and disappeared persons in Sri Lanka.

Speaking to The Daily Morning yesterday (24), Families of Missing Persons President Brito Fernando said that the report will be handed over at several locations in Colombo tomorrow (26) and on 27 March.

He noted that the report primarily contains complaints raised by women from the South and highlights concerns over the lack of accountability in ongoing efforts to trace missing persons.

“While handing over the report, we are also requesting a mechanism for accountability regarding the search for the truth of those who have gone missing,” Fernando said.

Meanwhile, responding to the concerns, Office on Missing Persons (OMP) Chairperson Mahesh Katulanda said that the country already has systems in place to ensure transparency in its operations and that investigations into missing persons are ongoing.

“We are meeting families who have lodged complaints, one by one, and have appointed 25 teams for this process. These teams include senior citizens, lawyers, activists and representatives from various sectors of society. Families of missing persons can place their trust in our functionality and transparency,” Katulanda said.

Bus and three-wheeler fares have been increased in line with the recent fuel price adjustment.

As of midnight yesterday, bus fares were raised by 12.19%.

According to Cabinet Spokesperson Minister Dr. Nalinda Jayatissa, the minimum bus fare has increased from Rs. 27 to Rs. 30. The maximum fare for regular bus services has risen by Rs. 263, taking the fare from Rs. 2,159 to Rs. 2,422.

The National Transport Commission (NTC) announced that fares for semi-luxury bus services have increased from Rs. 39 to Rs. 44, luxury services from Rs. 50 to Rs. 60, and super-luxury services from Rs. 80 to Rs. 90.

Meanwhile, three-wheeler fares been increased with effect from today.

Chairman of the Western Province Road Passenger Transport Authority, Gamini Jasinghe said that this is a temporary adjustment in response to rising fuel prices.

Accordingly, the fare for the first kilometer has been increased by Rs. 10, bringing the new cost to Rs. 110, while the fare for each additional kilometer has been increased by Rs. 5, bringing the new cost up to Rs. 90.

Meanwhile, the All Ceylon Inter-Provincial School Children Transport Association has requested a 10% fare increase.

According to Chairman of the All Ceylon Bakery Owners’ Association, N.K. Jayawardhana, prices of bakery products, including bread, have been raised by Rs. 10, effective from midnight yesterday.

Additionally, the Chairman of Container Transport Owners Association said that Container Transport fares have been increased by 20%.

India’s External Affairs Minister S. Jaishankar stated that he held a productive discussion with Sri Lanka’s Foreign Minister Vijitha Herath on the implications of the ongoing West Asia conflict.

In a post on X, Jaishankar noted that the talks, held over the phone, focused on the repercussions of the regional tensions.

He reaffirmed India’s commitment to its “Neighbourhood First” policy and the “Vision MAHASAGAR” initiative, underscoring the importance of regional cooperation and stability.

A university campus in northern Sri Lanka has become the latest flashpoint in the country’s long-running ethnic tensions, after police interrogated student leaders over a protest in which the national flag was replaced with a black flag on Independence Day.

Students at the University of Jaffna boycotted lectures and took to the streets on Thursday (19) in solidarity with three of their peers, who spent five hours being questioned at the Jaffna Police Headquarters over the incident, which took place on 04 February.

On that day, students had removed the Sri Lankan flag and hoisted a black flag in its place, an act of defiance that mirrored similar protests across the North and East, where Tamil communities raised black flags to signal that Independence Day holds little meaning for them while their political aspirations remain unrecognised.

Earlier this month, officers from the Crime Prevention Division entered the university campus and questioned the Vice-Chancellor and the Registrar for around three hours, recording their statements.

Students condemned the move, objecting both to the presence of police on university grounds and to the prolonged questioning of senior academics.

The summoning of student leaders added further fuel to the anger.

The President of the Jaffna University Students’ Union and the President of the Faculty of Arts Students’ Union were called in for questioning through a letter dated 13 March, instructing them to appear on the 16th.

However, the letter was only handed to the students on the 17th.

After clarifying the situation with police, the students appeared at Jaffna Police Headquarters on Thursday morning, where they were questioned for approximately five hours before their statements were formally recorded.

Police said further steps would be taken after seeking the advice of the Attorney General.

What has particularly angered students is that a parallel university inquiry had already been conducted at the direction of the University Grants Commission.

A committee comprising the professor in charge of the university’s racial reconciliation unit, the Student Disciplinary Officer and the Chief Security Officer investigated the matter and submitted a report to the Commission.

That inquiry identified 30 individuals, including two female students, as being directly connected to the incident.

During that internal process, students were clear about their intentions.

They stated that their actions were meant to convey that Sri Lanka’s Independence Day carried no significance for Tamils as long as the aspirations of the Tamil people continued to go unrecognised.

For many students, the police investigation running alongside a completed internal inquiry amounts to a second punishment for the same act, and a warning shot aimed at silencing dissent on campus.