The Sri Lankan rupee ended weaker on Wednesday as importers bought dollars on fears that the local currency could depreciate further if communal violence in the central district of Kandy spreads to other areas, dealers said. Buddhist mobs attacked mosques and businesses belonging to the minority Muslims overnight, police said on Wednesday, despite the imposition of a state of emergency to restore peace in the bitterly divided island.
Police imposed an indefinite curfew in Kandy where the violence has been centred since Sunday night following the death of a Buddhist youth in an altercation with a group of Muslims. The rupee closed at 155.35/40 per dollar, compared with Tuesday's close of 155.05/15. It hit a record low of 155.90 per dollar on February 14. "Exporters are on a wait-and-see approach, while importers bought higher amount of dollars.