Reuters - ** Sri Lankan shares and the rupee closed weaker on Monday, with investors awaiting cues from next week’s budget and the outcome of talks between government authorities and the IMF, market source said. ** The rupee ended at 179.70/80 per dollar, compared with Friday’s close of 179.40/80. ** Finance Minister Mangala Samaraweera will present the 2019 budget on March 5. Government authorities are in discussion with the IMF to continue a $1.5 billion loan which was delayed after a political crisis unfolded in October. ** Traders and investors are waiting to see how the market would react to the central bank’s surprise announcement on Friday of reducing commercial banks’ statutory reserve ratio (SRR) by 100 basis points after the effective date March 1, the sources said. ** The central bank reduced the SRR to increase liquidity and spur credit growth as policymakers struggle to boost a faltering economic growth following a political crisis and a recent rate increase. ** Foreign investors exited from government securities for the first time in five weeks in the week ended Feb. 20, with net sales of 1.5 billion rupees, the central bank’s latest data showed. ** The local currency posted a loss of 0.4 percent last week after a similar dive in the previous week due to high dollar demand from importers and outflows from the stock market. ** The rupee has climbed 1.6 percent so far this year as exporters converted dollars and foreign investors purchased government securities amid stabilising investor confidence after the country repaid a $1 billion sovereign bond in mid-January. ** Worries over heavy debt repayment after the 51-day political crisis that resulted in a series of credit rating downgrades dented investor sentiment as the country struggled to repay its foreign loans. ** Sri Lanka has raised its borrowing limit for dollar-denominated bonds to $3 billion and chosen seven lead managers to tap the international market as soon as possible, three government sources said last week. ** The rupee dropped 16 percent in 2018, and was one of the worst-performing currencies in Asia due to heavy foreign outflows. ** The Colombo Stock Exchange index closed lower for a sixth straight session on Monday, shedding 0.2 percent to 5,826.26 - its lowest close since Oct. 25. ** The benchmark index dropped 1.2 percent last week, recording its third straight weekly fall. It declined about 1 percent in January. ** Turnover was 765.3 million rupees ($4.26 million), less than last year’s daily average of 834 million rupees.