COLOMBO, Sept 1 (Reuters) - The Sri Lankan rupee traded firmer against the dollar on Monday as inward remittances and sales of the greenback by exporters outpaced demand by importers, dealers said.
Dealers expect the local currency to remain steady for the rest of the year after central bank Governor Ajith Nivard Cabraal said recently the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable.
The rupee was traded 130.18/21 per dollar at 0602 GMT, firmer from Friday's close of 130.22/25.
"The rupee is firmer on inward remittances," a currency dealer said.
Foreign investors bought a net 250 million rupees ($1.92 million) worth of government securities in the week ended Aug. 27, official data showed.
Sri Lanka's main stock index was up 0.1 percent, or 7.31 points, at 7,041.40 at 0604 GMT, trading at more than three-year highs.
Turnover stood at 715.2 million Sri Lankan rupees ($5.49 million), with 20.7 million shares changing hands. (1 US dollar = 130.1800 Sri Lankan rupee) (Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)