2 Rupees (Employees Provident Fund) – Sri Lanka

In 2008, Sri Lanka's currency situation was defined by intense pressure on the Sri Lankan Rupee (LKR) amidst a combination of domestic conflict and global economic turmoil. The government was engaged in a final, costly military offensive against the Liberation Tigers of Tamil Eelam (LTTE), which led to high defence expenditure and strained public finances. Simultaneously, the global financial crisis and soaring commodity prices, particularly for oil and food, worsened the country's trade deficit and triggered a balance of payments crisis. The Central Bank of Sri Lanka (CBSL) struggled to maintain the rupee's peg within a managed float, depleting foreign reserves in a costly defence of the currency.

Authorities responded with a series of strict import controls and sought financial assistance from the International Monetary Fund (IMF), though an agreement was not finalized until 2009. Despite these measures, the rupee faced significant depreciation pressure. High inflation, which peaked at over 20% during the year, eroded purchasing power and further undermined confidence in the currency. The CBSL was forced to maintain high-interest rates to curb inflation and attract foreign capital, a move that also risked slowing economic growth.

Ultimately, 2008 represented a critical juncture where wartime fiscal policies collided with external shocks, exposing underlying macroeconomic vulnerabilities. The depletion of foreign reserves, a widening current account deficit, and persistent inflation created a perfect storm that the managed exchange rate regime could not withstand. This precarious situation set the stage for the more severe economic challenges and eventual IMF intervention in the following year, as the currency's stability became increasingly dependent on external financing and a resolution to the protracted civil conflict.