Sri Lankan rupee weakens

The Sri Lankan rupee ended weaker on Tuesday due to dollar demand from a state bank to cover import bills. Rupee forwards were active, with two-week forwards ending at 152.70/80 per dollar, compared with Monday's close of 152.65/75. "There was some selling (of dollars) by a foreign bank, but a state bank bought. They have some large import bills to cover and therefore they bought dollars from the market," said a currency dealer, asking not to be named.
The rupee is under pressure due to the higher seasonal import demand some oil bills, dealers said. Foreign investors net bought government securities worth 70 million rupees ($461,285) in the week ended March 22. They have net sold 63.2 billion rupees of such instruments so far this year.