1 Rupee (Premadasa) – Sri Lanka

In 1992, Sri Lanka's currency situation was characterized by a managed float within a dual exchange rate system, a legacy of economic liberalization begun in 1977. The Central Bank of Sri Lanka maintained an official rate for government transactions and essential imports, while a more market-driven secondary rate, known as the "guest rate," applied to most other foreign exchange dealings. This system aimed to conserve scarce foreign reserves, control inflationary pressures from imports, and provide a degree of stability, but it also created distortions and a active black market for foreign currency.

The economy was under significant strain from the ongoing civil war, which diverted substantial fiscal resources towards defence spending and disrupted key economic sectors like tourism. Consequently, the rupee faced persistent depreciation pressure. Inflation, though variable, remained a concern, eroding domestic purchasing power. The government, under President Ranasinghe Premadasa, pursued an export-oriented growth strategy and relied on external borrowing and IMF support, which came with conditionalities often pushing for further exchange rate unification and liberalization.

Overall, 1992 represented a period of transition and challenge. The dual exchange rate regime was an imperfect tool to balance macroeconomic stability with the demands of a war-time economy and a liberalizing trade framework. The persistent gap between the official and market rates highlighted the underlying economic pressures, setting the stage for further reforms later in the decade that would eventually move Sri Lanka towards a more unified, market-based exchange rate system.