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Foreigners sell Sri Lanka rupee bonds

ECONOMYNEXT- Foreign holdings in Treasury Bills and Bonds fell marginally in the week ended January 01 to 104 billion rupees from 104.7 billion rupees a week earlier, central bank data showed.

Foreign investments in bonds gained for the first time in three weeks in the week ended December 24, before returning to sales last week.

Foreign investments in rupee bonds picked up in the run-up to the elections and there was also stronger buying in the week after election with total holdings rising to 120 billion rupees on November 20, up from 108 billion rupees on October 16.

However some selling began after the government announced a fiscal stimulus package with wide and steep tax cuts.

Bond sales and purchases have varied from time to time as some holders sell and others buy in the past.

However foreigners have been generally on the selling side since April 2018, when a rate hike was enforced with term and reverse repo injections. (Colombo/Jan03/2019)

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