* Heavy importer dollar demand pulls currency down * Rupee outlook remains unchanged despite cbank comments * State-owned bank intervenes to prevent rupee fall-dealers * Stx dip on profit taking after previous session gains COLOMBO, April 20 (Reuters) - Sri Lanka's rupee edged down on Friday due to importer dollar demand despite the central bank saying $574 million inflows are expected within a month. The rupee ended at 120.20/30 against the dollar, weaker than Thursday's close of 129.70/90. It fell to 130.60 intraday, but a state-owned bank sold dollars at 130.40, helping the currency to recover. The central bank said on Friday that there was no need to intervene in the market as the country would see $574 million of inflows within a month. However, many dealers said the market would react only when the inflows come in and they still believe the currency warranted further depreciation. The currency has depreciated 12.2 percent since the central bank stopped defending it on Feb. 9 after repeatedly saying there will not be any depreciation in 2012 followed by a 3 percent devaluation on Nov. 21., "Intervention will not help now as we still see heavy importer demand," said a currency dealer on condition of anonymity. Sri Lanka's stock market fell 1.1 percent or 61.59 points to 5,457.13 on profit taking after a more than 2 percent jump in the previous session as the Securities and Exchange Commission (SEC) suspended a 10 percent price band on price movements. The market has been declining recently due weakness in the rupee, rising market interest rates, and the government raising fuel prices by up to 40 percent. The day's turnover was 622 million rupees ($4.79 million), well below this year's daily average of 1.31 billion rupees. The market, however, saw a net foreign inflow of 52 million rupees, extending the net foreign buying to 21.3 billion rupees so far in 2012. The Colombo bourse is one of the worst performing Asian markets this year, losing 10.2 percent.

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