Foreign investors buy Sri Lanka rupee bonds
ECONOMYNEXT – Foreign investors have bought into Sri Lanka rupee bonds in the week to May 22, official data show, reversing a trend seen in recent weeks.
Foreign investor holdings in rupee bonds climbed to 145.3 billion rupees from 143.29 billion rupees a week earlier, official data show.
Sri Lanka’s saw some foreign bonds sales in the weeks following a Easter Sunday blasts.
Sri Lanka’s private bank credit has slowed, helping strengthen the rupee, though state spending is set to pick up with a salary hike and there may be a reduction in revenues, analysts have said.
In general gilt yields have been moving down.
With the rupee no longer under pressure due to weaker credit, the central bank had also bought dollars generating liquidity making the floor policy rate active.
The central bank however has stopped overnight rates falling by withdrawing excess liquidity at around 8.5 percent. (Colombo/May27/2019)