Lankan rupee firms on exporter dollar sales

COLOMBO, Mar 27 (Reuters): The Sri Lankan rupee closed slightly stronger on Tuesday as exporter dollar sales and inward remittances surpassed importer demand for the US currency, dealers said.

The rupee closed at 156.00/10 per dollar, compared with Monday's close of 156.05/15. "There were (dollar) conversation's for salaries and to pay bonuses ahead of the festival," said a currency dealer.

The rupee is expected to remain under pressure on continued importer demand for dollars ahead of the traditional New Year in mid-April, dealers said.

The rupee touched an all-time low of 156.20 per dollar on March 16. The rupee has weakened 1.69 per cent so far this year after declining 2.5 per cent last year and 3.9 per cent in 2016.

A gradual depreciation in the rupee and higher volatility are expected this year on account of debt repayments by the government, dealers said. The International Monetary Fund said on March 9 that Sri Lanka's economy remained vulnerable to adverse shocks due to its large public debt and low external buffers.