Oct 29 (Reuters) - The Sri Lankan rupee fell to its lowest level in more than one week on Tuesday on importers' demand for dollars, with further downward pressure expected in the near term because of project-related imports, dealers said. The currency, which appreciated 0.4 percent last week on foreign buying in the rights issue of John Keells Holdings Plc , on Tuesday moved further away from a near four-month closing high hit last week. The spot rupee traded at 131.10/25 per dollar at 0552 GMT, a level last touched on Oct. 17, and below Monday's close of 130.90/131.00. "We see the rupee under pressure due to importer dollar demand," said a currency dealer who asked not to be named. Some dealers said a state bank, through which the central bank usually directs the market, was seen selling dollars at 131.10 rupees. The currency has fallen for a second day after foreign buying in the rights issue ended on Friday. Foreign buying in John Keells helped boost the currency for much of last week. The company, Sri Lanka's biggest conglomerate, is raising $299 million by selling rights and warrants to fund a $850 million resort project. The deadline to raise the funds was Friday. The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and is up 3.05 percent since then. Sri Lanka's main stock index was trading down 0.35 percent, or 20.85 points, at 5,908.12 as of 0557 GMT. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Chris Gallagher)

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