Sri Lanka rupee trades marginally lower against greenback

From left: Dr. Fernando Im, Senior Country Economist for Sri Lanka and the Maldives, The World Bank, Hon. Eran Wickramaratne, State Minister, Ministry of Finance and Mass Media, Dr. W A Wijewardana, Former Deputy Governor of the Central Bank of Sri Lanka, Prof. Indralal de Silva, Former (Chair) of Demography, University of Colombo, Prof. Amala de Silva, Department of Economics, University of Colombo at the panel discussion on "Demographic Change in Sri Lanka" moderated by Dr. Ramani Gunatilaka, International Centre for Ethnic Studies.

August 30, 2007 (LBO) – The Sri Lanka rupee traded at a low of 113.17 against the greenback and closed at 113.12/18 Thursday, a day after it broke the resistance level at 113 rupees, dealers said. The rupee traded at 113.10 yesterday and also closed at 113.12/18 despite mild official intervention through a state name.

The rupee held ground today with no overt support from the authorities though a foreign name sold about two million dollars pushing the rupee up briefly to 113.02/113.08 in intra-day trading.

The rupee has been on a correction path since the Central Bank reduced intervention last week and has been consolidating downwards against the green back.

Economic analysts say the rupee has been under pressure since May when a reserve outflow began, and the pressure had worsened due to sterilized intervention by the monetary authority.