COLOMBO May 2 The Sri Lankan rupee traded a tad
wreaker on Friday in dull trade but dealers expect the currency
to be stable in the near term as private sector credit remained
The spot rupee, was traded at 130.60/65 per dollar at
0506 GMT, weaker from Wednesday's close of 130.61/63.
"There is not much of trading taking place, very dull
trade," said a currency dealer.
Both the stock and foreign exchange markets were closed on
Thursday for May Day, a public and bank holiday.
Lower credit demand from the private sector, even though key
interest rates have been at multi-year lows since January, has
At an auction on Tuesday, the central bank rejected all bids
for the benchmark 91-day treasury bills with yields already at
their lowest since January 2007, data showed.
Last week, the central bank kept policy rates steady at
Private sector credit grew 4.4 percent year-on-year in
February, the slowest since May 2010, latest data from the
central bank showed. That compared with a growth of 5.2 percent
in January this year and 13.3 percent in February 2013.
The central bank, in its monetary policy statement last
week, expressed confidence that private sector credit growth
would rebound in the second quarter and push up the pace of
Dealers expect the rupee to trade in a 130.60-130.70 range
in the near future until credit growth picks up. The currency
has been hovering between 130.55 and 130.70 since March 3,
Thomson Reuters data showed, with the central bank intervening
to smoothen any sharp volatility.
Sri Lanka's main stock index was up 0.35 percent, or
21.60 points, at 6,245.27 as of 0509 GMT. Turnover was at 324.8
million rupees ($2.49 million), with 12.4 million shares traded.
Shares in Aitken Spence Company Plc rose 1.32
percent to 100.00 rupees a share.
($1 = 130.6400 Sri Lanka Rupees)
(Reporting by Ranga Sirilal; Editing by Anupama Dwivedi)