COLOMBO Feb 27 The Sri Lankan rupee traded
weaker on Monday, hurt by strong importer dollar demand after a
long weekend even as concerns of possible further depreciation
in the absence of central bank guidance weighed on the
sentiment, dealers said.
Rupee forwards were active with two-week forwards
trading at 152.90/153.10 per dollar, compared with Thursday's
close of 152.50/70.
The markets were closed on Friday for a Hindu religious
"Pressure is there (on the rupee) due to importer dollar
demand after three days of holidays," said a currency dealer
asking not to be named.
The currency is under pressure due to dollar demand from
importers ahead of the traditional Sinhala-Tamil new year in
mid-April while foreign investors continue to sell government
securities, dealers said.
Foreign investors sold a net 15.37 billion rupees ($101.29
million) in the week ended on Feb. 22, extending the outflow
from government securities to 64.5 billion rupees ($425.96
million) in the eight weeks.
Sri Lanka could face balance-of-payments pressure due to
foreign outflows from government securities, a government
document showed last week, even as the island-nation is in the
process of raising up to $2.5 billion from foreign borrowing.
The rupee has weakened 1.44 percent so far this year. It
fell 3.9 percent last year, following a 10 percent drop in 2015.
Sri Lankan shares were down 0.23 percent at 6,124.10
as of 0633 GMT. Turnover was 808.29 million rupees ($5.33
($1 = 151.7500 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas