Sri Lanka equity markets to see net inflow: Deputy CB Governor

Oct 07, 2011 (LBO) – Sri Lanka’s equity markets would see a positive inflow by the end of the year as better pricing attracts investors, deputy Central Bank governor Dharma Dheerasinghe said. So far this year Sri Lanka’s equity markets have seen a net outflow of 150 million dollars.

“By the end of the year there will be a surplus inflow, even through the stock exchange,” Dheerasinghe said.

“We have got some commitments at the moment, those will come.

Longstanding foreign investors sold out when Sri Lanka’s stock prices rose steeply giving an opportunity take profits, he said.

Analysts have also said that purchases by state controlled funds gave liquidity to foreign investors to exit. In the past, foreign investors who wanted to exit had to sell mostly to other foreign investors as the domestic market did not have enough capacity.

Colombo’s stock exchange is a top performer even now, and is in positive territory though most other markets have retreated amid global uncertainty.

The Colombo Stock Exchange has said its benchmark index was up 2.2 percent compared to Bangladesh which was down 28.7 percent, Hong Kong down 22 percent, India down 19 percent.

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