Sri Lankan rupee forwards ended slightly higher as banks sold dollars to cover short position in the local currency as President Mahinda Rajapaksa, also the finance minister, presented the 2015 budget in the parliament. Rajapaksa, presenting the budget in the parliament on Friday afternoon, said Sri Lanka in 2015 would trim its value added tax and reduce its budget deficit to the lowest level since 1977.
The spot currency was quoted at 130.85/95 per dollar but not traded, dealers said. It was not traded during the week after closing at 130.60/80 on October 17. The three-day forwards, or spot-next, actively traded in the absence of spot, ended at 130.90/131.00 per dollar, tad firmer from Thursday's close of 131.00/05. "We have seen some bank selling with the budget speech," a currency dealer said. Dealers said they are awaiting to see the impact of the budget and the exporters were reluctant to sell dollars ahead of the budget announcement.
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