COLOMBO, April 12 The Sri Lankan rupee ended
weaker on Wednesday as importer dollar demand and dividend
payments outpaced mild inward remittances ahead of the new year
holidays, dealers said.
Rupee forwards were active, with two-week forwards
ending at 153.50/60 per dollar, compared with Tuesday's close of
"There was demand (for dollar) from a foreign bank and we
have seen some demand from small banks as well. But conversions
are very less as most of the companies are closed for the new
year," said a currency dealer, who requested anonymity.
Sri Lanka will celebrate its traditional new year this week
and markets will be closed on Thursday and Friday.
The rupee has been under pressure due to increased seasonal
imports ahead of the new year, although dealers expect the
pressure to ease with seasonal inward remittances.
Outflows due to rupee bond sales by foreign investors have
also been putting pressure on the currency.
Foreign investors net bought government securities worth
259.5 million rupees ($1.71 million) in the week ended April 5.
However, they net sold 63.9 billion rupees worth of such
instruments so far this year.
($1 = 151.6000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry