Sri Lanka records high purchase of rupee bonds by foreign investors
Official data of Sri Lankan authorities have reportedly noted that foreign investors have bought Rs. 4.2 billion of rupee bonds in the week to November 20, which has taken the total stock up to Rs. 120.8 billion.
Foreign investors started selling down rupee Treasuries from around May 2019, when they held 157 billion rupees of bonds, the local media has reported.
Reports have further stated that foreigners have also sold during the balance of payments troubles in the second half of 2018, triggered by excess liquidity shock from around August, which was worsened by a political crisis, which delivered a negative confidence shock.
“Government will instill confidence in the economy, which will attract foreign investments into Treasury bills and bonds,” Senior Economic Advisor to Sri Lanka’s Finance Minister, Ajith Nivard Cabraal has been quoted as saying last week.
OSL take:
The assumption to office by the new President and government has boosted the level of confidence foreign businesses/investors have on Sri Lanka. The economic policies of the government that are business conducive and attractive to foreign investors have resulted in many businesses/investors exploring opportunities in Sri Lanka. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/05122019/Z_1 |