COLOMBO: The Sri Lankan rupee traded slightly firmer on Monday as banks and exporters sold dollars and with dealers continuing to trade one-day forwards as the spot dollar has not been moving beyond 131.60 rupees.
The one-day forwards edged up to 131.65/70 from Thursday's close of 131.73/75 at 0555 GMT. The currency and stock markets were closed on Friday for Eid-ul-Fitr.
However, the pressure on the currency would remain unless firm dollar inflows take place, dealers said.
The rupee has fallen around 4 percent between June 7 and July 18, after foreign investors started pulling out of Sri Lanka's treasury bonds due to a rise in US treasury yields.
The currency has been steady around 131.60 since July 18 as the central bank has not been allowing the spot dollar to be traded beyond 131.60 amid a rise in foreign holding in government securities, dealers said.
The central bank has said there have been net foreign inflows to the government securities but it has stopped publishing foreign holdings in long term T-bonds separately since June 28.
Sri Lanka's main stock index was 0.28 percent, or 17.12 points, weaker at 6,134.80 at 0555 GMT.
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