Sun, 29 May 2022 Today's Paper

Foreign outflows from Sri Lanka govt. bonds settling after rate cut, says Central Bank

6 September 2019 12:10 am - 0     - {{hitsCtrl.values.hits}}

A A A

(Colombo) REUTERS: Outflows from Sri Lanka’s government securities have been settling after the Central Bank’s rate cut last month, the Central Bank’s senior Deputy Governor Nandalal Weerasinghe said yesterday, amid market concerns over more foreign bond selling.


Currency dealers say the August 23 rate cut has accelerated foreign outflows, and the rupee has fallen 0.7 percent since then, mainly due to foreign selling of government securities.


Concerns over heavy outflows have weighed down on the rupee due to possible further outflows after the rate cut, but Weerasinghe downplayed the concerns.


“The truth is that outflows have decelerated after the rate cut and now settled,” Weerasinghe told Reuters, adding that the outflow before the rate cut was higher than that after the rate cut.


Offshore investors offloaded government securities worth of Rs.25.2 billion in the two weeks to August 28 data showed, extending the year-to-date net foreign outflow to Rs.53.2 billion.


“Recent capital flow movements are mainly driven by global market development as experienced by several emerging market economies,” 
Weerasinghe said.


The Central Bank does not release daily foreign flow data and weekly data is released with a two-day lag.


Foreign investors sold Rs.12.9 billion worth government securities in the week ended Aug. 21 - the worst weekly outflows in eight months, while they offloaded Rs. 12.3 billion worth government bonds in the following week through Aug. 28. The next weekly outflow data will be released today and Weerasinghe declined to comment on outflows for the week ended Sept. 4.


The Central Bank on Aug.23 lowered rates for the second time in four months to boost sluggish growth after tourism and investments plummeted following the deadly Easter Sunday bomb attacks by Islamist militants. 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Rashini Ready to Fight Cancer, but needs help

Sri Lanka is officially bankrupt and on the precipice of starvation. Fuel que

Student’s basic right to education trampled due to ‘hair issue’

Education is a fundamental right guaranteed by the UN Charter and the Constit

Sajith will lead SL soon but this time he failed in his decision making - Harin

Tourism Minister and SJB MP Harin Fernando has come out strong on his decisio

Shocking inside stories of the sugar scam

In the backdrop of former Finance Minister Ali Sabry’s proposed plan to inc