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

• Outflow Figures: Offshore investors recorded a net selling of Rs. 8.61 Bn (US$ 26.1 Mn) in local currency bonds for the week ended October 29. Cumulative foreign outflows reached Rs. 22.4 Bn over the last four weeks. • YTD Trajectory: Net foreign inflows into rupee bonds stand at ~Rs. 49.7 Bn year-to-date, following a net inflow of Rs. 71.5 Bn in the previous year. Overall, net foreign selling occurred in 4 out of the last 20 weeks. • Currency & Macro Dynamics: Sell-offs follow downward pressure on the local currency, which has depreciated 6.8% through October 30. Currency pressure stems from elevated oil and vehicle imports alongside geopolitical conflicts in the Middle East. • Policy Measures: The rupee has stabilized after the Central Bank raised key policy rates by 100 bps in May to manage demand-side inflation, following a ~50% fuel price increase.