Thanks for your suggestion. I tried upgrading to 2.0.10, but it doesn't support Rails 3.2.11.
Bundler could not find compatible versions for gem "rails":
In Gemfile:
refinerycms (= 2.0.10) ruby depends on
rails (!= 3.2.0, != 3.2.1, != 3.2.10, != 3.2.11, != 3.2.2, != 3.2.3, != 3.2.4, != 3.2.5, != 3.2.6, != 3.2.7, != 3.2.8, != 3.2.9, < 3.3, >= 3.1.11) ruby
I tried 2.0.9 instead and was able to install it, but still same issue. Any other pointers!