For the tenth consecutive week ending November 21, Sri Lanka’s government securities received inflows from overseas investors, according to data from the Central Bank.
Investors are speculating about a rate drop by the central bank during this week’s Monetary Policy Review meeting, which is set for late Tuesday, according to analysts. On Wednesday (27), the most recent monetary policy rates will be revealed.
They claimed that because of the rupee’s gain and the decline in market interest rates, some investors have been purchasing in an attempt to benefit.
By November 21, foreign investors’ holdings of government securities were worth 55,545 million rupees.
Despite reduced imports, analysts argue Sri Lanka’s deflationary policies have contributed to inflows. The fresh arrivals also follow the November 14 parliamentary elections in Sri Lanka, which gave Marxists Anura Kumara Dissanayake, the leader of the Janatha Vimukthi Peramuna (JVP), a resounding mandate.
The president’s party has promised to eradicate Sri Lanka’s pervasive, systemic corruption. Since Dissanayake was elected, the island nation has not altered its policy stance. The National People’s Power (NPP), led by Janatha Vimukthi Peramuna and led by Dissanayake, gained 159 seats in the 225-member parliament. According to observers, the party’s impressive victory should increase investor confidence because it hasn’t changed any significant policies or departed from the International Monetary Fund loan program. In the first nine months of this year, Sri Lanka had a 66 percent foreign outflow of government securities worth 78.1 billion rupees.
