📈 Foreign Investors Buy Over US$ 24 Mn in Sri Lanka Rupee Bonds

• Overall Bond Inflows: Net foreign buying of government securities reached LKR 8.06 Bn (US$ 24.8 Mn) for the week ending August 28. • Cumulative Foreign Holding: Total foreign holdings rose to LKR 210.6 Bn (US$ 271.1 Mn), marking 11 consecutive weeks of net foreign buying since June 19 (LKR 89.3 Bn total in this period). Year-to-date inflows stand at LKR 69.3 Bn compared to LKR 71.5 Bn in 2025. • Currency & Economic Context: Inflows followed stabilization in the local currency. The rupee recovered to around 332 against the US dollar after reaching a low of 354 on May 21, reflecting a 5.7% depreciation year-to-date. • Policy & Market Dynamics: Demand was supported by prior deflationary policies, though recent inflationary pressures prompted a 100 bps policy rate hike in May. Inflation risks stem from global Middle East tensions and earlier fuel price increases, despite recent fuel price cuts in June and August.