FINANCIAL CHRONICLE – According to data from the Central Bank, foreign investors divested US$44.1 million from Sri Lankan government securities during the two-week period ending March 31, reflecting ongoing pressure on the local currency’s value.

During this timeframe, foreign entities sold a net total of 13,658 million rupees, equivalent to US$44.1 million at an exchange rate of 310 rupees per dollar. This marks the tenth week of rupee bond sales by foreign investors in the last 29 weeks.

The recent withdrawals have decreased foreign investments in rupee bonds to 2,251 million rupees for the first 14 weeks of the current year. Meanwhile, global investors are exhibiting caution towards economic growth, influenced by the recent conflicts in the Middle East.

In 2025, Sri Lanka experienced a total inflow of approximately 71.5 billion rupees, or about US$234.4 million, into rupee bonds. The country faced an outflow of 10.1 billion rupees (approximately US$32 million) in the two weeks following former President Donald Trump’s tariff announcement in early April of the previous year, resulting in a subsequent decline of the rupee.

Analysts have noted that Sri Lanka’s deflationary policies have contributed to attracting inflows, particularly in light of reduced import activities. Since May of last year, the central bank has maintained its key policy interest rates after a cumulative reduction of 825 basis points over a period of 24 months, and foreign investors continue to acquire rupee bonds despite the currency’s depreciation. (Colombo/April 03/2026)