ECONOMYNEXT – Foreign investors bought Sri Lanka government securities for the first time in two weeks in the week ended on August 28, the Central Bank data showed, in line with the global trend of foreign buying in bonds.
Foreign investors bought a net 2,101 million rupee ($7 million) worth of government securities in the week ended on August 28.
Global bond funds were popular for a 19th straight week as these funds saw a net $14.42 billion in inflows during the last week, Reuters reported.
Foreign investors sold a net $5.44 million worth Sri Lankan rupee bonds in the two weeks ended on August 21 amid uncertainties over Trump’s reciprocal tariff.
Sri Lanka suffered an outflow of 10.1 billion rupees ($32 million) in the two weeks soon after Trump’s tariff declaration in the first week of April and the rupee has fallen slightly since then.
The island nation has, however, enjoyed a total inflow of 38.6 billion rupees (around $130 million) into rupee bonds since December 26 last year through August 28, the data showed.
Sri Lanka’s deflationary policies have helped to see inflows amid curtailed imports, analysts have said.
The country witnessed foreign outflows worth 48.2 billion rupees in 2024 with 66 percent or 78.1 billion rupees worth outflow from the government securities in the first nine months of last year. (Colombo/September 2/2025)
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