📈 Foreign Investors Buy Over US$ 8.5 Mn in Sri Lankan Rupee Bonds

• Weekly & Consecutive Inflows: Foreign investors bought a net LKR 2.75 Bn (US$ 8.5 Mn) in government securities in the week ended September 11. This extends foreign buying to 13 straight weeks, totaling LKR 92 Bn (US$ 280 Mn) since June 19. • Record Foreign Holdings: Total foreign holding in rupee bonds reached a record LKR 213.4 Bn, up from LKR 72.1 Bn total inflow YTD and LKR 71.5 Bn in 2025. • Currency Stabilization: Inflows stabilized as the rupee recovered to 332 against the US dollar after dropping to 354 in May. The rupee has depreciated 5.7% YTD in 2026 amid elevated oil import costs and Middle East tensions. • Monetary Policy Context: Deflationary policies previously supported inflows. However, a 100 bps rate hike in May addressed recent inflationary pressures triggered by fuel price increases.