ECONOMYNEXT – Foreign investors bought around 3 million US dollars worth Sri Lanka government securities in the week ending January 1, extending the net overseas inflows into the risk-free fixed assets to 234.4 million US dollars, Central Bank data showed.
It was the 13th week foreigners have bought rupee bonds in the last 18. The foreign holding in government securities are near 26-month high.
Foreigners bought a net 938 million rupees (USD 3.07 million at 1$=305 rupees) in the week, bucking the global trend of outflows.
Global bond funds posted $1.97 billion of net outflows in the week, their first weekly sales since April 16, Reuters reported. Despite the last week setback, bond funds attracted $891.74 billion of net inflows in 2025, following $1.05 trillion in net inflows in 2024.
Short-term bond funds saw withdrawals of about $5.23 billion after a sizeable $10.16 billion net purchase the previous week.
The island nation has enjoyed a total inflow of around 71.5 billion rupees (around USD 234.4 million) into rupee bonds in 2025, the data showed.
The last week’s buying comes as global investors have been looking for safe-havens like gold after Fed rate cut early last month amid expectation of further rate slash.
The island nation witnessed inflows to a net 34,793 million rupees (113.7 million dollars) in the last 18 weeks.
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 and the rupee has fallen slightly since then.
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/January 03/2026)