COLOMBO, Aug 28 (Reuters) - The Sri Lankan rupee was slightly firmer in dull trade on Thursday as exporter dollar sales outpaced importer demand for the greenback.

Dealers expect the local currency to remain steady for the rest of the year after positive comments by the central bank chief last week.

Central bank Governor Ajith Nivard Cabraal said the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable. ID:nL4N0QQ4JE

The rupee LKR=LK was trading at 130.18/24 per dollar at 0501 GMT, from Wednesday's close of 130.20/22.

"Not much of activity. It's a quite day," a currency dealer said.

Foreign investors bought a net 1.81 billion rupees ($13.9 million) worth of government securities in the week ended Aug. 20, official data showed.

The central bank rejected all 91-day treasury bill bids at an auction for the second straight week, while the yields on the 182-day and 364-day treasury bills held steady at a weekly auction on Wednesday. ID:nL3N0QX2LP

Sri Lanka's main stock index .CSE rose 0.03 percent, or 2.29 points, to 6,987.20 at 0504 GMT, hovering near three-year highs.

Turnover stood at 124.7 million Sri Lankan rupees($957,757.2965), with 21.9 million shares changing hands. (1 US dollar = 130.2000 Sri Lankan rupee)

(Reporting by Ranga Sirilal; Editing by Sunil Nair) ((ranga.sirilal@thomsonreuters.com; +94-11-232-5540; Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net; www.twitter.com/rangaba ))

Keywords: MARKETS SRI LANKA/