COLOMBO: The Sri Lankan rupee ended weaker on Wednesday on importer dollar demand as local traders bought the US currency as a precaution amid concerns of a steep depreciation in the rupee in the absence of central bank intervention, dealers said.

Rupee forwards were active with two-week forwards ending at 153.40/70 per dollar, after hitting a low of 153.65 during the day, weaker than Tuesday’s close of 152.70/90.

They have fallen 1.04 percent so far this week.

The currency is under pressure due to foreign outflows from government securities. Foreign investors have net sold $325.70 million worth of securities in the seven weeks to Feb. 15, surpassing the total net foreign outflow of $324.3 million in 2016, according to the latest central bank and government data.

The rupee has weakened 1.3 percent so far this year, under pressure from rising imports and net selling of government securities by foreign investors. It fell 3.9 percent last year, following a 10 percent drop in 2015.—Reuters