Sri Lankan Rupee Erases Early Gains, Ends Flat

The Sri Lankan rupee ended flat on Tuesday erasing early gains, with late import demand from a state bank offsetting inflows from exporter dollar sales and inward remittances, dealers said.

The rupee ended at 130.21/24 per dollar, unchanged from Monday’s close after it rose to 130.20 in early trade due to inflows from remittances and exports.
 
“There was severe buying by a state bank to cover its import bills, probably for an oil bill,” said a currency dealer. Dealers also said they expect the currency to be under upward pressure in the absence of strong growth in private credit and imports.
 
Two state banks, through which the central bank has been directing the market, have been buying the local currency at 130.21 rupees, preventing a sharp rise, dealers said. (The Gulf Today)


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