ECONOMYNEXT – Sales of Sri Lanka rupee bonds by foreign investors had eased in the week to September 04, with barely 500 million rupees worth of sales being made.
The stock of gilts held by foreigners fell to 110.8 billion rupees from 111.3 billion rupees a a week earlier.
In the previous two weeks, foreign investors sold in excess of 12 billion rupees of bonds.
Foreign investors bought bonds up to the 10th of July, official data shows, when the stock of bonds rose to 144 billion rupees from 142 billion rupees.
Foreign investors were buying into rupee bond up to around late February, when they held about 165 billion rupees of bonds. Bond investors have been selling and buying over a period.
In 2019 Sri Lanka’s rupee interest rates have been falling.
In the past few year the rupee had also fallen sharply due to the operation of a so-called ‘flexible exchange rate’ and real effective exchange rate targeting. (Colombo/Sept08/2019)