The Sri Lankan rupee rose on Friday, helped by heavy inward remittances for the Ramazan festival and exporter dollar sales, while dollar buying by a state bank prevented any sharp appreciation. The rupee ended at 130.20/25 per dollar, firmer from Thursday's close of 130.23/25. Dealers said state banks also lowered the dollar buying rate by 2 cents to 130.21, from the previous day's 130.23, to curb sharp gains in the local currency.
"There are heavy inward remittances, probably for Ramazan," said a currency dealer. Finance Secretary P.B. Jayasundera said on Wednesday Sri Lanka was building up its foreign exchange reserves while keeping its currency stable as the island nation sees more dollar inflows. Speaking at a Foreign Correspondents' Association forum, Jayasundera said the choice was to let the exchange rate appreciate and enjoy the short-term gain or let the exchange rate remain flexible within a reasonable level.
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