Sri Lankan rupee ends weaker on importer dollar demand
The Sri Lankan rupee ended weaker on Friday as dollar demand from importers weighed on the local currency, dealers said.
Rupee forwards were active, with spot-next forwards ended at 153.10/20 per dollar, compared with Thursday’s close of 152.98/153.02.
One-week forwards ended at 153.30/40, compared with Thursday’s close of 153.25/35.
“The (dollar) demand was there today as well,” said a currency dealer, requesting anonymity.
“Due to the mid-year reserve targets, we don’t think the central bank would intervene in the market unless they see a huge volatility,” said the dealer, adding that the year-end seasonal demand for dollars would start from August.
The rupee has been under pressure after central bank Governor Indrajit Coomaraswamy said the bank would allow gradual depreciation of the currency.
The central bank has set a target of $1.2 billion in direct market purchases of dollars to boost the island nation’s reserves this year.
The spot rupee did not trade on Friday. The central bank fixed the spot reference rate at 152.50 on May 5.
Foreign investors bought a net 1.37 billion rupees ($8.98 million) worth of government securities in the week ended June 7. They have sold a net 39.96 billion rupees worth of government bonds so far this year.
($1 = 152.4200 Sri Lankan rupees)
(Reuters)
Latest Headlines in Sri Lanka
- Four Sri Lankans injured in Iranian missile strike on Israel’s Dimona March 22, 2026
- Sri Lanka cuts postal deliveries to every other day amid fuel crisis March 22, 2026
- Sri Lanka Police arrest two suspects with over 3,900 liters of illegal fuel March 22, 2026
- Sri Lanka revises fuel prices from March 22, 2026 March 21, 2026
- Sri Lanka expands fuel quotas under QR system March 21, 2026
what coomaraswamy ought to forecast is the rate of decline and then how it is to influence the cost of living at rs 200.
What startegy has coomaraswamy in mind to deal with the decoline of the rupee and is there a limit to this free fall.