Sri Lanka rupee weaker

Mar 22, 2012 (LBO) – Sri Lanka’s rupee opened firmer against the US dollar Thursday but weakened in mid-morning trade with no sign of intervention by state banks to support the currency, dealers said. It said in a statement more inflows of dollars were expected in the weeks ahead as several commercial banks raise funds abroad for their Tier 2 capital and for investments in hotel projects. The spot rate was 130.15 / 130.30 against the green back with the local currency having opened at 129.90 / 130.20.

The rupee has fallen sharply against the dollar and other key international reserve currencies in recent days and had slumped to a record low of 131.60 Monday, March 19.

The central bank said pressure on the rupee is expected to ease with private sector credit grown and import demand slowing in response to policy tightening.