COLOMBO Oct 4 The Sri Lankan rupee closed
weaker on Tuesday on importer dollar demand in the absence of
central bank intervention, and the market expects the local
currency to be under downward pressure due to seasonal imports
until mid-December, dealers said.
The spot rupee closed at 146.70/75 per dollar,
edging down from Monday's close of 146.55/65.
The rupee has been under downward pressure due to seasonal
importer dollar demand, posting a 0.65 percent decline last
"We do not see any direction from the central bank regarding
the spot rupee level," a currency dealer said.
Finance Ministry Ravi Karunanayake said on Monday the
government wanted a strong currency through higher foreign
inflows and without interventions.
"We are trying to get into an equilibrium between the
interest rates and exchange rate," he told a Foreign
Correspondents Association (FCA) forum.
He also said the government was planning to impose heavy
penalties on tax defaulters and expand tax offices across the
country as it aims to increase the tax base.
The central bank has been under pressure from the
International Monetary Fund (IMF) to continue rebuilding
international reserves and maintain exchange rate flexibility to
develop the foreign exchange market further.
(Reporting by Shihar Aneez; Editing by Sunil Nair)