COLOMBO May 8 Sri Lankan rupee forwards ended
slightly weaker on Monday on mild dollar demand from importers,
but anticipated dollar inflows from sovereign bondsS and
syndicated loans prevented steeper losses in the local currency,
Rupee forwards were active, with the spot-next ending
at 152.80/85 per dollar compared with Friday's close of
152.70/80. Two-week forwards closed at 153.10/20 per dollar,
edging down from Friday's close of 153.00/20.
The spot rupee, which started trading on Friday
after four months, was not active, with the central bank's
reference rate at 152.10.
"There was some (importer dollar) demand. There was not much
of conversions may be due to the holidays. Exporters may wait
till next week," a currency dealer said.
"But most investors are on the sidelines awaiting inflows."
Sri Lankan markets will be closed on Wednesday and Thursday
to mark a Buddhist religious holiday.
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.
Currency dealers expect higher dollar liquidity from the
inflows to help stabilise the rupee.
The country expects another $1 billion from two separate
The central bank has allowed the currency to gradually
depreciate since mid-December, revising its spot reference rate
multiple times. It has said that defending the currency with
foreign exchange reserves did not "seem sensible".
The island nation has seen inflows into equities and
government securities since early April.
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil