Sri Lankan rupee down

The Sri Lankan rupee closed weaker for a second session on Friday on dollar demand from banks. The rupee dropped 0.3 percent to close at 176.10/60 per dollar, compared with Thursday's close of 175.60/90, Refinitiv data showed. Analysts expect the currency to weaken further as money flows out of stocks and government securities. The rupiah gained 0.6 percent this week and was up 4.5 percent for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. The rupee dropped 16 percent in 2018 and was one of the worst-performing currencies in Asia.
Foreign investors sold a net 10.8 billion rupees worth of government securities in the week ended May 8, extending net foreign outflow to 20.8 billion rupees so far this year, central bank data showed. Investor sentiment was damaged at the end of last year, when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament.