S.Lanka rupee slips on stock-related demand, shares gain

* Rupee weaker on stocks, corporate demand

* Bourse gains on large trade in Keells

* Both markets in limbo on IMF loan decision

By Ranga Sirilal

COLOMBO, March 27 (Reuters) - Dollar demand from corporate buyers and the share market drove Sri Lanka's rupee lower on Friday, while the bourse gained on a large trade in conglomerate John Keells Holdings JKH.CM, traders said on Friday.

Analysts said both the currency and stock markets were awaiting details of a $1.9 billion International Monetary Fund (IMF) loan.

The rupee LKR= closed weaker at 114.85/115.05 per dollar from Thursdays cloese of 114.25/35. On Feb. 27 it hit an all-time low of 115.75/95 before the central bank intervened to keep it steady.

"The rupee ended weaker at 115.00 rupee levels on the back of outward flow on stock-related activities and there was some importer demand," a currency dealer said.

Currency dealers also said the IMF loan is expected to move the rupee depending on the conditions.

Sri Lanka's central bank has said it will allow more flexibility in the rupee exchange rate the $1.9 billion IMF loan is finalised. [ID:nCOL138924]

An IMF team is in town negotiating terms of the loan.

The rupee has fallen 6.05 percent since Oct. 30, after the central bank allowed depreciation to preserve dollars and enhance exporter competitiveness. It is down 1.7 percent so far in 2009.

The Colombo All-Share index .CSE edged up 0.7 percent or 11.48 points to 1648.44 on large trade in select shares sch as John Keells Holdings.

"The market is up on the large trade in John Keells," said Harsha Fernando, CEO at SC Secrities in Colombo.

Shares in conglomerate John Keells Holdings jumped 3.61 percent to 64.50 rupees, calculated on a weighted average while the top listed private lender Commercial Bank of Ceylon COMB.CM closed 0.62 percent up at 80 rupees a share.

The island nation's only fixed-line telephone operator Sri Lanka Telecom SLTL.CM closed flat at 33.75 rupees while top mobile operator Dialog Telekom DIAL.CM also closed flat at 4.90 rupees a share.

Analysts said the Keells trade contributed more than 80 percent of the market turnover of 186.26 million Sri Lankan rupees ($1.63 million). Last year's daily average was 464 million.

The interbank lending rate or call money rate CLIBOR fell to 11.209 percent from Thursday's 11.434 percent.

For secondary market rates, please see <0#LKBMK=>. ($1=114.95 Sri Lankan rupees) (Editing by Bryson Hull)