COLOMBO Feb 28 The Sri Lankan rupee rose for a
third straight session on Tuesday, helped by exporter dollar
sales, but the gains were capped by concerns about possible
further depreciation in the local currency in the absence of
central bank guidance, dealers said.
Rupee forwards were active with two-week forwards
trading at 151.70/80 per dollar, compared with Monday's close of
The rupee has been under pressure due to dollar demand from
importers ahead of the traditional Sinhala-Tamil new year in
mid-April and as foreign investors continue to sell government
securities, dealers said.
Foreign investors sold a net 15.37 billion rupees ($101.62
million) in the week ended Feb. 22, extending the outflow from
government securities to 64.5 billion rupees.
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 1.1 percent so far this year. It fell
3.9 percent last year, following a 10 percent drop in 2015.
Sri Lankan shares were 0.11 percent firmer at
6,130.62 as of 0656 GMT. Turnover was 352.1 million rupees.
($1 = 151.2500 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by