Oct 30 (Reuters) - The Sri Lankan rupee strengthened on Wednesday, edging up from a near two-week low as banks sold dollars, but downward pressure on the currency is expected in the near term because of seasonal and project-related imports, dealers said. Some dealers said a state bank, through which the central bank usually directs the market, was seen selling dollars at 131.00 rupees. The spot rupee closed 130.95/05 per dollar firmer than Tuesday's close of 131.10/20 per dollar, its lowest close since Oct. 17. "A state bank sold dollars at 131.00 and there was some bank (dollar) selling too," said a currency dealer who asked not to be named. The currency, which appreciated 0.4 percent last week on foreign buying in the rights issue of John Keells Holdings Plc , hit a near four-month closing high last week. The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and is up 3.21 percent since then. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)

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