Foreigners sell Sri Lanka rupee bonds
ECONOMYEXT – Foreign investors have begun to sold about 24 billion rupees of bonds over the past two weeks, ending a steady trickle of inflows over August and September, official data shows.
In the week ending November 02 foreigners sold 8.5 billion rupees of bonds, after selling 7.0 billion rupees of bonds the previous week, central bank data shows.
Foreign investments in rupee bonds peaked at 316.7 billion rupees on October 05 and has since fallen 24.5 billion rupees to 292.2 billion rupees.
A possible Fed hike around the corner, which has led to selling in frontier markets as well as political uncertainty Sri Lanka is contributing the sellout, dealers said.
But with reduced domestic borrowings, there has been domestic buying.
The central bank had also accommodated the sales by injecting liquidity. The Treasury bill stock of the Central Bank had moved up from about 210 billion rupees in mid-October to about 234 billion rupees by November 04. (Colombo/Nov07/2016)