The Sri Lanka Rupee weakened to a new low to close Friday at 162.11 rupees against the US dollar, with experts saying that excess liquidity in money markets was fuelling import demand in recent weeks.
Overnight interbank surplus liquidity fell 2.56 billion rupees on Thursday to 22.74 billion rupees. The Central Bank had sterilised some cash via term repo deals, which will expire on August 30 and help fire more credit and imports.