Dec 3 (Reuters) - The Sri Lankan rupee traded firmer on Tuesday led by exporter dollar conversions and inward remittances from Sri Lankan expatriates for their families ahead of Christmas and the New Year, dealers said. The spot rupee was traded at 130.90/95 at 0653 GMT, firmer from Monday's close of 131.00/05 per dollar. "There were exporter conversions to pay bonuses and salaries ahead of the festive season and we also saw some inward remittances," a currency dealer said on condition of anonymity. The dealer said a state bank bought dollars at 130.90 rupees after the currency gained to 130.80. "We expect further appreciation in the currency, and to end the year at 130.60." The rupee has gained 3.3 percent since it hit a record low of 135.20 on Aug. 28. Last week, dealers said, the central bank did not allow the spot rupee to trade beyond 131.20 per dollar with state banks selling dollars for select banks at that level. Central bank Governor Ajith Nivard Cabraal last week told Reuters that the monetary authority would intervene to keep the currency stable when there was excess volatility after it hit a seven-week low on importer dollar demand despite intervention by state banks. The spot was kept steady at 131.10 for three weeks through Nov. 25 before it was allowed to trade at 131.15. At 0658 GMT, Sri Lanka's main stock index was trading up 0.28 percent, or 16.10 points, at 5,790.20. (Reporting by Shihar Aneez; Editing by Sunil Nair)

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