Sri Lankan rupee ended slightly firmer on Wednesday due to dollar selling by a foreign bank, but the rupee is expected to weaken as floods and landslides brought damage and dented market sentiment, dealers said. Rupee forwards were active on Wednesday, with spot-next forwards ending at 152.85/95 per dollar, compared with Tuesday's close of 152.95/153.00 per dollar.
The rupee has been under pressure after the central bank governor on May 18 said the bank would allow gradual depreciation of the currency. The spot rupee did not trade on Wednesday. The central bank fixed the spot rupee reference rate at 152.50 on May 5.