📈 Foreign Investors Buy Sri Lanka Rupee Bonds for Second Straight Week

Foreign investors were net buyers of Sri Lankan rupee bonds for a second consecutive week, supported by a stable local currency and consistent offshore demand. Key Highlights: • Weekly Inflow: Net buying reached Rs. 3,242 Mn (US$ 9.8 Mn) for the week ended October 9. • Recent Trend: Net foreign purchases total Rs. 5.1 Bn over the last two weeks, offsetting a prior Rs. 16.5 Bn outflow. Net inflows recorded in 15 of the past 17 weeks. • Total Foreign Holdings: Foreign holdings in Sri Lankan government securities rose to Rs. 202 Bn. • YTD Performance: Net foreign inflows into local currency bonds reached Rs. 60.7 Bn so far this year, compared to Rs. 71.5 Bn in the previous year. • Macro Context: The rupee depreciated 6.3% year-to-date through October 9, impacted by higher oil and vehicle import costs alongside Middle East tensions. Central Bank raised key policy rates by 100 bps in May to control inflation following fuel price adjustments.