The Rupee Speaks: “I’ve Finally Stopped Falling… For Now”

Sri Lanka’s most gossiped-about celebrity isn’t a cricketer, a politician, or a pop star — it’s the rupee. And right now, the rupee is strutting around like it’s just had a glow-up after decades of being the tragic friend in the currency club.

“Remember When I Couldn’t Catch a Break?”

For decades, the rupee’s life was a drama series — constant devaluations, “emergency” rate cuts, IMF interventions, and the occasional full-blown crisis. In the 1980s, it started slipping regularly, and by the 2010s it was practically free-falling on loop. The episodes? 2012, 2015/16, 2019, and 2019–2022 — each time, the same script:

Central bank cuts rates to hit a 5% inflation target.

Rupee tanks.

Imports get pricier, SOEs bleed money, and growth stalls.

Cue political chaos and economic hangovers.

The rupee still remembers the 1949 humiliation — a big post-war Sterling crisis in the UK dragged it down, even though Ceylon was sitting on record reserves. “I was pegged to the Bank of England and thought I was classy,” the rupee sighs. “Turns out, I was just tied to someone else’s drama.”

“But Look at Me Now!”

Fast-forward to today, and the rupee’s got a new storyline. According to Ray Abeywardena — Director of the Colombo Stock Exchange and Group CEO at HNB Investment Bank — it’s been a whole year of stability.

Speaking in Singapore at an Invest Sri Lanka forum, Abeywardena couldn’t stop bragging:

“The exchange rate has remained stable, supported by prudent policy initiatives, improved external sector performance, and a steady influx of foreign investments and tourism receipts. The stability enhances investor confidence and provides predictability for businesses.”

Translation: the rupee’s been going to therapy, eating clean, and hitting the gym.

The Secret Makeover Team

The rupee’s new-found poise didn’t happen by magic. Since 2022, the central bank’s been running a broadly deflationary policy, keeping inflation low — even missing its 5% target, but in the good way. No rate-slashing chaos, no “oops-we-broke-it” currency experiments.

This policy shift has:

Calmed forex markets.

Attracted foreign money.

Given businesses room to plan without fearing their costs will balloon overnight.

And — whisper it — even the IMF’s impressed.

“I’ve Still Got Trust Issues”

Of course, the rupee knows better than to get too cocky. It’s been through enough toxic relationships with bad policy to know that political instability, reform backsliding, or a global shock could send it spiraling again.

“I’m stable now,” the rupee says, “but I’ve been ghosted by policymakers before. One wrong move and I’m back in crisis tweets.”

Bottom Line: Predictable Is the New Sexy

For now, the rupee’s enjoying its first proper calm in years. Investors are smiling, tourists are arriving, and exporters aren’t panicking about exchange rate roulette.

The gossip in financial circles? If Sri Lanka keeps the discipline up, the rupee might finally swap its reputation as “the currency that can’t commit” for “the stable partner you build your business with.”