COLOMBO Feb 7 The Sri Lankan rupee ended
slightly weaker on Tuesday due to dollar demand from banks as
foreign investors continued to sell government securities, while
the central bank revised the spot reference rate to a record low
of 150.75, dealers said.
The market shrugged off the central bank's policy rate
decision in which the monetary authority kept rates steady for a
sixth straight month.
However, the central bank flagged possible "corrective
measures" in the months ahead in a sign that further tightening
might be on the cards to temper inflation pressures and
safeguard a fragile rupee.
The central bank has revised the spot rupee
reference rate to a record low of 150.75 from 150.50, dealers
Rupee forwards were active, with two-week forwards
ending at 151.22/32 per dollar, compared with Monday's close of
Dealers said the central bank wanted to discourage foreign
investors exiting from government securities by making these
expensive for them.
Officials at the central bank were not available for
The rupee has fallen 0.5 percent so far this year and has
been under pressure due to rising imports and net selling of
government securities by foreign investors, while the central
bank has said defending the currency with foreign exchange
reserves "does not seem sensible".
Foreign investors net sold 26.6 billion rupees ($177.10
million) worth of government securities in the four weeks to
Feb. 1, according to latest central bank data.
($1 = 150.3000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by