COLOMBO, Oct 7 (Reuters) - The Sri Lankan rupee firmed to a near three-month high on Monday on dollar sales by banks and exporters after the central bank said it expected the currency to behave in "a stable manner" in the next few months.
Spot rupee traded at 131.10/20 by 0520 GMT, up slightly from Friday's close of 131.15/21, its highest close since July 17.
Central Bank Governor Ajith Nivard Cabraal told Reuters in an interview on Friday that the rupee would "behave in a stable manner" in the next few months as the monetary authority has taken steps needed to deal with a volatile environment.
The dollar came under pressure globally on Monday as a U.S. budget standoff looked set to drag into a second week. Against a basket of major currencies with the dollar eased 0.1 percent to be within striking distance of an eight-month trough hit last week.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses since then. It has risen 3.2 percent since hitting its all-time low.
The currency is down 2.8 percent this year, after depreciating about 10 percent in 2012.
Sri Lanka's main stock index was up 0.34 percent, or 19.69 points, at 5,857.64. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Kim Coghill)