January 18, 2019 (LBO) – Foreign institutional investors have continued to sell Sri Lanka’s bonds and stocks, even after Sri Lanka’s constitutional crisis has been resolved.
Figures up until the 18th of January 2019 show Rs19bn (US$100mn) in net foreign selling out of Sri Lanka’s government bond markets. Equity markets showed net outflows of Rs2.3bn (US$12mn) so far in 2019.
These outflows come on the back of 2018’s US$1bn net foreign selling from Sri Lanka’s capital markets. Only US$800mn of foreign holdings remain in Sri Lanka’s bond markets.
Outflows from Sri Lanka’s capital markets have been cited by the Governor of the Central Bank of Sri Lanka as one of the chief causes for the country’s depreciating currency which sits close to an all time low at Rs182 to the dollar.
— Sanjeewa Dayarathne (@DayarathneSa) January 18, 2019