{"id":602726,"date":"2026-05-25T09:10:13","date_gmt":"2026-05-25T09:10:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/602726\/"},"modified":"2026-05-25T09:10:13","modified_gmt":"2026-05-25T09:10:13","slug":"rupee-to-recover-bmi-predicts-major-sri-lanka-rebound","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/602726\/","title":{"rendered":"Rupee to recover? BMI predicts major Sri Lanka rebound"},"content":{"rendered":"

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Sri Lanka\u2019s rupee is expected to recover from its recent decline by the end of 2026 as global oil prices ease and the Central Bank maintains a tighter monetary policy, according to BMI, a unit of Fitch Solutions.<\/p>\n

BMI said the decline in oil prices is likely to reduce pressure on Sri Lanka\u2019s import bill, while higher interest rates are expected to support currency stability.<\/p>\n

\u201cA renewed balance-of-payment crisis is unlikely, which limits the risk of a sharp depreciation in the currency,\u201d Carolyn Pang, a Singapore-based country risk analyst at BMI, said.<\/p>\n

She noted that the Sri Lankan rupee is expected to rebound to Rs. 320 against the US dollar by the end of the year, marking a gain of more than 3% from current levels, amid expectations that the Iran conflict could end by June.<\/p>\n

The Sri Lankan rupee has come under pressure in recent weeks amid increased demand for US dollars, rising global oil prices, and concerns over external sector pressures.<\/p>\n

However, analysts believe improved foreign reserves, ongoing economic reforms, and continued support from international lenders provide a stronger foundation compared to the 2022 economic crisis. (Newswire)<\/p>\n

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