The Sri Lankan rupee rose on Tuesday on dollar sales by a private bank amid mild demand for the greenback from importers, dealers said.

The rupee were trading at 140.95/141.05 per dollar at 0526 GMT, compared with Monday's close of 141.24/28.

Dealers said the two state banks, through which the central bank directs the market, were not seen selling dollars, but a local private bank sold dollars at 140.95.

"The rupee is firmer on bank dollar selling," said a dealer who declined to be identified. "Imports have come down specially the vehicle imports that's the main reason for the appreciation."

The rupee hit a record low of 141.40 per dollar on Sept. 28, but has recovered over the past few days after a state-run bank sold dollars.

The finance ministry on Friday imposed a 100 percent margin on letters of credit for motor vehicles to discourage unnecessary imports, in a move to prevent dollar outflows and further weakening of the rupee.

Sri Lanka's main stock index was up 0.01 percent at 7,089.55 at 0543 GMT. Turnover was 392.1 million rupees ($2.8 million).

Reuters