COLOMBO: The Sri Lankan rupee edged lower on Monday because of modest demand for dollars from importers, with dealers expecting more downward pressure on the local currency due to seasonal year-end demand for imports. At 0534 GMT, the rupee was trading at 131.04/10 per dollar, down from Friday's close of 131.00/05.
"There is some importer dollar demand, mainly from seasonal imports," said one currency dealer.
Some dealers expect the central bank to intervene to keep the rupee steady at least until the end of the year. However, central bank Governor Ajith Nivard Cabraal said on Friday said that the market could manage the dollar demand "itself without much intervention".
The rupee hit a record low of 135.20 per dollar on Aug. 28 but has since managed to rally 3.15 percent. Sri Lanka's main stock index was down 0.11 percent at 5,948.04 as of 0539 GMT.
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