Net outflows from securities market & CSE surpasses USD200mn in October

Dec 21, 2018 (LBO) – Sri Lanka’s Central Bank says the trend of foreign investment outflows from the financial account continued during October, with notable outflows from the Colombo Stock Exchange and the government securities market.

Government securities market recorded a net outflow of 172 million dollars in the month of October while foreign investments in the CSE, including both secondary and primary markets, recording a net outflow of 36 million dollars.

Securities market recorded a net outflow of 640 million by the end of the first ten months of 2018 while the CSE recorded a net inflow of 1 million in the first ten months which comprised an inflow of 77 million to the primary market and a net outflow of 76 million from the secondary market.

Central Bank said foreign currency outflows together with import expenditure exerted pressure on the domestic foreign exchange market in the month of October.

The major inflow to the financial account during October was a foreign currency term financing facility of 1 billion US dollars obtained by the government.

Meanwhile, Earnings from tourism in October are estimated at 284 million dollars with cumulative earnings at 3,496 million US dollars during the first ten months of 2018.

Workers’ remittances at 599 million US dollars recorded an increase of 9.7 percent year-on-year in October 2018, the Central Bank data showed.