COLOMBO May 12 Sri Lankan rupee forwards were
slightly firmer in dull trading on Friday due to tepid dollar
sales by exporters.
Rupee forwards were active, with the two-week
forwards trading at 153.05/15 per dollar at 0701 GMT, slightly
up from Tuesday's close of 153.10/20. The financial markets were
closed for a Buddhist religious holiday on Wednesday and
The spot rupee, which resumed trading on May 5
after four months, was not active on Friday, with the central
bank's reference rate at 152.10.
Sri Lanka's Central Bank Governor Indrajit Coomaraswamy on
Tuesday said that the monetary authority did not want to allow
the rupee to fall "too quickly", but suggested further weakness
in the exchange rate is on the cards as policymakers sought a
The downward adjustment on the spot currency was to make the
rupee more competitive, he added.
The monetary authority on Tuesday kept the policy rates
steady as expected, saying inflation was expected to decelerate
to mid-single digit levels by end-2017.
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.
Coomaraswamy said the sovereign bond inflows were expected
by end of this week.
Currency dealers expect higher dollar liquidity from the
inflows to help stabilise the rupee.
The country also expects another $1 billion from two
separate syndicated loans, and the central bank chief said a
$450 million syndicated loan is almost decided and the inflows
are expected next week.
The central bank has allowed the currency to gradually
depreciate since mid-December, revising its spot reference rate
The island nation has seen inflows into equities and
government securities since early April.
Sri Lankan shares were down 0.1 percent at 6,660.23
as of 0706 GMT. Turnover stood at 380.9 million rupees ($2.50
($1 = 152.5000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by