ECONOMYNEXT – Foreign investors bought over $2 million dollars worth Sri Lanka government securities in the week ended on April 30, the Central Bank data showed, as they bought the island nation’s papers for the second straight week after they dumped the bonds in the previous two weeks amid jitters over U.S. President Donald Trump’s tariff.
The rupee has fallen slightly since Trump’s declaration while global investors have been shifting to safe-havens like gold.
Sri Lanka saw 600 million rupees ($2 million at 1 US dollar = 300 LKR) worth inflows into the government securities in the week ended on April 30 after an inflow of 3.33 billion worth inflows in the previous week.
Sri Lanka suffered an outflow of 10.1 billion rupees in the previous two weeks ended on April 17.
Before the outflows started, the island nation had enjoyed a total inflow of 28.6 billion rupees ($95.6 million) since December 26 last year, the data showed.
Trump’s tariffs plus a 245 percent duty on China have rattled global financial markets last month.
The island nation witnessed total inflows of 29.9 billion rupees into treasury bonds and bills in the 15 weeks through December 26, the official data showed.
The value of government securities held by foreign investors was at 69,262 million rupees by December 26.
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/May 03/2025)
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