Sri Lankan Rupees slips on importer dollar demand

REUTERS – The Sri Lankan rupee closed slightly weaker yesterday (April 23) as dollar demand from importers and banks surpassed mild selling of the U.S. currency by exporters, dealers said. The rupee hit a record low of 156.90 against the dollar during the session, weakening further from its previous all-time low of 156.50 hit on Wednesday (April 18). The rupee closed at 156.85/95, weaker from Friday’s (April 20) close of 156.25/35. Central Bank Governor, Indrajit Coomaraswamy stated that if the inflation rate could be maintained between 4% and 5%, the depreciation in the rupee would be around 2% or 3%. The rupee has weakened 2.2% so far this year. It dropped 2.5% last year and 3.9% in 2016. The central bank has bought around $400 million from the market in the first three months of this year to help build reserves and repay some debt. Dealers said they expect the rupee to gradually weaken and face higher volatility this year due to debt repayments by the government.