Foreigners sell US$44.1mn worth Sri Lanka rupee bonds in two weeks

Foreign investors sold US$44.1 million worth of Sri Lanka government securities in the two weeks ended March 31, Central Bank data showed, amid renewed depreciation pressure on the local currency.

Foreigners sold a net 13,658 million rupees (US$44.1 million at 1$=310 rupees) in the two weeks. Foreigners have sold rupee bonds for a 10th week in the last 29.

The latest outflow in the last two reduced foreign investments in rupee bonds to 2,251 million rupees in the first 14 weeks of this year, data showed.

Globally, investors are cautious about economic growth due to the impact of the latest Middle East war.

The island nation enjoyed a total inflow of around 71.5 billion rupees (around US$234.4 million) into rupee bonds in 2025.

Sri Lanka suffered an outflow of 10.1 billion rupees ($32 million) in the two weeks following Donald Trump’s tariff declaration in the first week of April last year and the rupee has fallen since then.

Analysts have said Sri Lanka’s deflationary policies have helped inflows amid curtailed imports.

Sri Lanka’s central bank has kept its key policy rates steady since May last year after reducing them by 825 basis points over 24 months and foreign investors have been buying rupee bonds despite depreciation in the local currency.

source: Economy Next