ECONOMYNEXT – Foreign investors sold $3.8 million worth Sri Lanka government securities on a net basis in the week ended on July 3 and the country saw offshore selling for the third straight week after having inflows in the previous four weeks, Central Bank data showed.
Foreign investors sold 1,143 million rupees ($3.81 million) worth rupee bonds in the week.
The island nation witnessed around $28 dollar inflows into rupee bonds in the four weeks ending June 12, data showed.
Globally investors have been waiting for July 9 to see the impact of Donald Trump’s tariff impacts with the market’s lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea.
Sri Lanka suffered an outflow of 10.1 billion rupees in the two weeks soon after Trump’s tariff declaration in the first week of April and the rupee has fallen slightly since then, while global investors have been shifting to safe-havens like gold.
The island nation has, however, enjoyed a total inflow of 24.7 billion rupees ($82,2 million) into rupee bonds since December 26 last year through June July 3, 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/July 5/2025)