COLOMBO: The Sri Lankan rupee ended flat on Monday as mild importer dollar demand helped offset greenback sales from exporters and inward remittances, dealers said.
The dealers said they expect the local currency to remain steady for the rest of the year after positive comments by the central bank chief last week.
Central bank Governor Ajith Nivard Cabraal said last week the banking regulator would intervene in the thinly-traded market whenever required to keep the rupee stable.
The rupee ended at 130.18/20 per dollar unchanged from Friday's close.
"There were some exporter conversions and we have seen some remittances also. The morning import demand offset the exporter conversions," a currency dealer said.
The dealers said the two state banks through which the central bank usually intervenes to stem major declines in the currency, were not much active in the market.
Foreign investors bought a net 1.81 billion rupees ($13.9 million) worth of government securities in the week ended Aug. 20, official data showed.
The People's Bank of China on Monday said it would allow the central bank of Sri Lanka to invest in the country's interbank bond market.
Sri Lanka central Bank in a statement said the agreement with the People's Bank of China will enable the Bank to further diversify its reserves management activities into Chinese Renminbi denominated assets.
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