Sri Lanka had net inflows into capital markets in 2010: CentralBank

From left: Dr. Fernando Im, Senior Country Economist for Sri Lanka and the Maldives, The World Bank, Hon. Eran Wickramaratne, State Minister, Ministry of Finance and Mass Media, Dr. W A Wijewardana, Former Deputy Governor of the Central Bank of Sri Lanka, Prof. Indralal de Silva, Former (Chair) of Demography, University of Colombo, Prof. Amala de Silva, Department of Economics, University of Colombo at the panel discussion on "Demographic Change in Sri Lanka" moderated by Dr. Ramani Gunatilaka, International Centre for Ethnic Studies.

Mar 07, 2011 (LBO) – Sri Lanka’s has seen a net capital inflow of 51.8 billion rupees (459 million US dollars) into the country through approved securities investments accounts the Central Bank said. The central bank’s exchange control department in 2010 there had been an inflow of 215.9 billion rupees (1,910 million US dollars in to these accounts and outflows including dividends of 164.1 billion rupees or 1,451 million US dollars.

There has been persistent net foreign selling in day to day trading in Sri Lanka’s stock market but central bank officials have repeatedly said that the realized funds are not leaving the country.

Some of Sri Lanka’s stocks have high price to earnings ratios. The statement did not say whether the funds were going to debt markets.