CBSL dollar buying slows to $ 64 m in September as rupee slips

The Central Bank of Sri Lanka (CBSL) was a net buyer of $ 64.2 million from the domestic foreign exchange market in September, down 89% from the record $ 579 million it bought in August, as the rupee weakened against the US dollar after two months of recovery, CBSL data released last Friday showed.

The rupee closed at Rs. 330.83 per dollar on 30 September from Rs. 328.01 at end-August, a depreciation of 0.85% during the month. This widened its year-to-date (YTD) depreciation to 6.3% from 5.5% at end-August, already exceeding the 5.6% decline for the whole of 2025. The rupee had appreciated 10.7% in 2024.

The CBSL purchased $ 85 million in September while selling $ 20.8 million, having recorded no sales in August. September’s net purchases were also 66% lower than the $ 187.8 million bought in September 2025, when the CBSL made no sales.

The September figure was the smallest monthly net purchase since the CBSL resumed buying in June with $ 70.5 million, after being a net seller of $ 12.9 million in April and $ 211.3 million in May. The rupee came under its heaviest pressure in that period following the escalation of the conflict in the Middle East in late February, with its YTD depreciation peaking at 7.9% at end-June.

Purchases then accelerated to $ 348.6 million in July and the record $ 579 million in August, the highest single-month purchase since January 2025, as the rupee recovered, with its YTD depreciation easing to 7.8% by end-July and 5.5% by end-August.

September’s buying took net purchases for the first nine months of 2026 to over $ 1.54 billion, against $ 2 billion for the whole of 2025.