COLOMBO, Aug 21 (Reuters) - The Sri Lankan rupee closedweaker on Wednesday for the third day running as foreignoutflows from government securities weighed on the currency, inline with the trend in other emerging markets. Local sharesfell.
** The rupee ended 0.4% weaker at 178.75/179.00 perdollar, compared with Tuesday's close of 178.00/00, extendingthe loss in the last three sessions to 0.9%. The currency wasdown 0.2% for the last week but is up nearly 2.4% this year.
** Market sources said foreign investors have been getting outof government securities, as they have in other emergingmarkets. The decline comes before a central banks monetarypolicy announcement, which the market expects to be neutral.
** Foreign investors bought a net 0.61 million rupees worth ofgovernment securities in the week ended Aug. 13. But the netforeign outflow year-to-date has been 28 billion rupees, centralbank data showed.
** The benchmark stock index ended 0.1% weaker at5,907.74 with improved trading volume. The index posted a lossof 0.82% last week, its first weekly decline in eight.
** Investors have been in a wait-and-see mode since the mainopposition party named a hard-line former defence chief as itspresidential candidate.
** The market has been looking forward to hearing policies fromformer defence chief Gotabaya Rajapaksa as well as the rulingparty's presidential candidate, who has yet to be announced,dealers said.
** So far this year, the stock index has dropped about 2.4%.
** Turnover was 671.6 million rupees ($3.76 million) onWednesday, more than this year's daily average of about 653.7million rupees so far. Last year's daily average came in at 834million rupees.
** Foreign investors bought a net 73.2 million rupees worth ofrisky assets on Wednesday. They have sold a net 1.11 billionrupees worth of shares so far this year, market data showed.
** For a report on global markets, click
** For a report on major currencies, click($1 = 178.7500 Sri Lankan rupees)(Reporting by Shihar Aneez, editing by Larry King)