The Sri Lankan rupee edged down on Thursday on importer dollar demand in light trading ahead of a long weekend and a traditional festival this week, dealers said. Markets will be closed for a public holiday on Friday on account of the New Year.
The rupee closed at 155.70/80 per dollar, compared with Wednesday's close of 155.65/75. "Dollar demand from small banks dragged the currency", said a currency dealer.
The central bank governor last week said if inflation rate can be maintained between 4-5 percent, the depreciation in the rupee would be around 2-3 percent. Sri Lanka is marketing two tranche of sovereign bonds with five-year tranche has indicated at initial price guidance of 6 percent area, and a 10-year tranche at 7 percent area.
The island nation had planned to raise $2 billion from dollar bonds this year. Inflows from sovereign bonds will boost the rupee, currency dealers said.