FINANCIAL CHRONICLE – In the week ending April 10, foreign investors divested a total of US$2.25 million from Sri Lankan government securities, according to data released by the Central Bank. This selling activity coincided with increased downward pressure on the local currency.
During this period, foreigners sold a net amount of 697 million rupees (equivalent to US$2.25 million at an exchange rate of 310 rupees per dollar). This marks the eleventh instance of foreign sales of rupee bonds within the last 30 weeks, as reported by the data.
As a result of these recent outflows, foreign investment in rupee bonds has reached 1,554 million rupees in the first 15 weeks of this year, a significant decline from the 21,863 million rupees recorded in the initial six weeks of the year.
On a global scale, investor sentiment remains cautious regarding economic growth, largely due to the ongoing conflict in the Middle East.
In 2025, Sri Lanka experienced a total inflow of approximately 71.5 billion rupees (around US$234.4 million) into rupee bonds. However, the nation faced an outflow of 10.1 billion rupees (approximately US$32 million) in the two weeks following former President Donald Trump’s tariff announcement in the first week of April last year, leading to a continuous decline in the rupee’s value.
Analysts attribute the recent inflows to Sri Lanka’s deflationary measures, which have resulted in reduced imports. Since May of last year, the Central Bank has maintained its key policy interest rates, following a cumulative reduction of 825 basis points over a 24-month period beginning in June 2023. Despite the depreciation of the local currency, foreign investors have continued to purchase rupee bonds. (Colombo/April 15/2026)
