COLOMBO: The Sri Lankan rupee ended steady on Wednesday erasing early gains as late importer dollar demand offset exporter greenback sales while dealers 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 needed to keep the rupee stable.
The rupee ended at 130.20/22 per dollar, unchanged from Tuesday's close.
"Importer (dollar demand) came in the latter part of the day," a currency dealer said.
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's 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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