The Sri Lankan rupee slipped on Friday as importer dollar demand surpassed the selling of the greenback by exporters and banks, and inward remittances, while communal violence in the central district of Kandy weighed on sentiment, dealers said.
Police said on Thursday it had arrested the suspected leader and nine others suspects behind a wave of anti-Muslim attacks by Sinhalese Buddhist hardliners in the central highlands region this week.
After five days of violence, police said the situation has calmed down, though they reimposed curfew on Friday night in Kandy. The rupee closed at 155.45/55 per dollar, compared with Thursday's close of 155.35/45. It hit a record low of 155.90 per dollar on February 14.
"Today trading was dull but ended a tad weaker on importer (dollar) demand," said a currency dealer.
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