COLOMBO May 16 The Sri Lankan rupee ended
weaker on Tuesday as importer dollar demand surpassed selling of
the U.S. currency by exporters, dealers said.
Rupee forwards were active, with the spot-next or
three-day forwards ending at 152.70/80 per dollar, compared with
Monday's close of 152.60/70.
The spot rupee did not trade on Tuesday.
The central bank fixed the spot rupee reference rate at
152.10 on May 5.
Central Bank Governor Indrajit Coomaraswamy said last week
that the monetary authority did not want to allow the rupee to
fall "too quickly", but suggested further weakness in the
exchange rate was on the cards as policymakers sought a
The downward adjustment to the spot currency was to make the
rupee more competitive, he added.
The central bank has allowed the currency to gradually
depreciate since mid-December, revising its spot reference rate
"There was a bit of demand (for dollars); the pressure to
depreciate was seen," said a currency dealer.
Sri Lanka regained a lucrative European Union trade
concession, mainly for its top exports garments, the European
Union said on Tuesday, but the facility will be subject to
vigorous monitoring as Colombo has yet to fully implement
The announcement helped cap losses in rupee forwards,
Currency dealers also said they expected higher dollar
liquidity from inflows to help stabilise the rupee.
Sri Lanka drew a blowout response in its return to the
international bond market, attracting orders of more than $11
billion from 500 accounts for a $1.5 billion 10-year bond.
($1 = 152.5000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju