COLOMBO: The Sri Lankan rupee ended marginally weaker on Thursday due to dollar demand from importers as well as banks to facilitate foreign outflows from government securities, dealers said.
Rupee forwards were active, with two-week forwards closing at 151.02/10, slightly weaker from Wednesday's close of 151.00/10.
"The rupee continues to be under pressure. It is reflected in the central bank's continuous moves to lower the reference rate," a currency dealer said, requesting anonymity.
The central bank had revised the spot rupee reference rate to a record-low of 150.50 from 150.25 on Tuesday.
"This means they do not want a stronger currency and want to allow gradual depreciation." The rupee also faces depreciation pressure due to seasonal importer dollar demand, dealers said.
Finance Minister Ravi Karunanayake said it was a turbulent time and the government would navigate it "in a correct manner". "I wouldn't want to speculate at all.
But you'll be surprised of what we will be doing," Karunanayake told reporters in Colombo when asked about the government's outlook on the rupee.
The rupee has been under pressure due to rising imports and net selling of government securities by foreign investors, while the central bank has said defending the currency was not sensible. Foreign investors net sold 21.1 billion rupees ($140.6 million) worth of government securities in the three weeks to Jan. 25, according to latest central bank data.
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