Feb 19 (Reuters) - The Sri Lankan rupee traded steady on Wednesday as state banks sold dollars to offset demand for the U.S. currency from importers and on stock-related outflows, dealers said. The spot rupee traded flat at 130.85/90 per dollar. "There are bids at 130.85 and the state banks are selling dollars at 130.85," said a currency dealer, asking not to be named. Another dealer confirmed that the two state banks, through which the central bank usually directs and intervenes in the market, sold dollars at 130.85 rupees. Sri Lanka's central bank on Monday kept policy rates steady at multi-year lows, with inflation expected to be contained throughout 2014 by "well-managed demand conditions and improved domestic supply." The market is still concerned about the sustainability of the central bank's policy measures to maintain a stable exchange rate, which is defended via selling and buying dollars, in a low-interest-rate regime. However, central bank Governor Ajith Nivard Cabraal said on Monday that "current conditions are sustainable," for lower interest rates and a stable exchange rate, but did not elaborate. Currency dealers and traders said the central bank's policies should work until the market sees a jump in private sector credit growth, which has risen 7.5 percent year-on-year in December from 7.3 percent a month earlier. Dealers expect the central bank to keep the currency below 130.85 per dollar until April. Usually, the rupee is under pressure in March and early April due to seasonal imports ahead of the traditional new year in mid-April. The rupee has gained about 3.3 percent since it hit a record low of 135.20 on Aug. 28 last year. It lost 2.5 percent in 2013. At 0534 GMT, Sri Lanka's main stock index was down 0.41 percent, or 24.78 points, at 5,996.88, trading at its lowest level since Jan. 8. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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