COLOMBO: The Sri Lankan rupee closed slightly weaker on Monday as importers bought dollars, but intervention by a state-run bank helped to prevent a sharp fall in the currency, dealers said.

The spot rupee closed at 130.80/90 per dollar, slightly weaker from Friday's close of 130.75/80.

"There was slight importer dollar demand and a state bank started selling dollars at 130.75 to prevent a fall in the rupee," said a currency dealer who declined to be identified.

Dealers expect the rupee to be under downward pressure in January due to a lack of demand and despite a sharp reduction in interest rates.

The local currency has gained around 3.3 percent since it hit a record low of 135.20 on Aug. 28.