ECONOMYNEXT – Foreign investors bought Sri Lanka government securities for the fourth straight week in the week ended on February 19 with the bonds held by offshore investors reaching a new 29-month high, the Central Bank data showed.
Foreigners bought a net 12 rupee (US$38,961 at 1$=308 rupees) in the week. It was the 18th week foreigners have bought rupee bonds in the last 25.
They have bought a net 23,316 million rupees (US$76.7 million) worth of bonds in the last four weeks.
The latest foreign buying has helped the island nation to see a net foreign inflow of 21,875 million rupees (US$71 million) in the first seven weeks of this year, data showed.
The buying also has boosted the foreign holding in the rupee bonds to its new high since September 7, 2023, the Central Bank data showed.
Globally, investors have been cautious amid possible rate cuts by the U.S. Federal Reserve.
When the Fed cuts interest rates, it triggers a chain reaction in global finance that effectively pushes capital out of the U.S. and pulls it toward riskier or alternative assets like emerging markets and metals, which could benefit countries like Sri Lanka.
The island nation enjoyed a total inflow of around 71.5 billion rupees (around US$234.4 million) into rupee bonds in 2025.
Sri Lanka suffered an outflow of 10.1 billion rupees ($32 million) in the two weeks soon after Donald Trump’s tariff declaration in the first week of April last year and the rupee has fallen since then.
Sri Lanka’s deflationary policies have helped to see inflows amid curtailed imports, analysts have said.
Sri Lanka’s central bank has kept its key policy rates steady since May last year after reducing them by 800 basis points through 24 months and foreign investors have been buying rupee bonds despite depreciation in the local currency. (Colombo/February 15/2026)