COLOMBO: The Sri Lankan rupee ended steady on Monday in dull trade, but dealers expect the currency to gain due to inflows from a new dollar bond.

The spot rupee ended unchanged at 130.70/75 per dollar.

Sri Lanka on Monday issued a price guidance at 6.25 percent area for an offering of new five-year US dollar-denominated bonds.

"The inflows will help boost the rupee," a currency dealer said on condition of anonymity.

Revealing its financial and monetary policies for 2014, the central bank said on Thursday it expected the rupee to strengthen in the medium term and its direct intervention in foreign exchange market would be minimum.

The local currency has gained about 3.4 percent since it hit a record low of 135.20 on Aug. 28. It lost 2.5 percent in 2013.