COLOMBO Jan 13 The Sri Lankan rupee ended
marginally weaker on Friday on importer dollar demand and with
the central bank adjusting the spot reference rate to a record
low of 150.15 rupees per dollar, dealers said.
The rupee has been under pressure due to rising imports and
net selling of government securities by foreign investors, they
Rupee forwards were active, with two-week forwards
ended at 150.60/70 per dollar, weaker from Wednesday's close of
"Today, the demand (for dollar) was there and it looks like
the demand is building up again and the rupee will weaken
further," a currency dealer said, asking not to be named.
The Central bank on Friday adjusted the spot reference rate
by 15 cents to a fresh record low of 150.15 per dollar from 150,
The spot rupee was hardly traded, dealers said.
One-week forwards also were not actively traded since Dec.
The market shrugged off Finance Minister Ravi Karunanayaka
comments on Thursday announcing higher returns and immediate
residence visas to foreigners who invest at least $300,000, in a
move to ease pressure on the island nation's currency.
Last week, the central bank's moral suasion prevented
further decline even as the monetary authority signalled a
change in its intervention policy.
Officials from the central bank were not available for
Central Bank Governor Indrajith Coomaraswamy said last week
that defending the rupee with foreign exchange reserves
"doesn't seem sensible" as it has always been followed by a
sharp depreciation in the currency.
($1 = 149.5000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas