ECONOMYNEXT – International traders purchased Sri Lanka authorities securities for the second straight week amid U.S. President Donald Trump’s push for steep new tariffs on European Union merchandise.
International traders purchased 8.57 million {dollars} value of presidency securities within the week ended on July 17, extending the whole influx to 14.22 million {dollars} within the final two weeks. The island nation noticed internet offshore promoting for the three straight weeks, Central Financial institution knowledge confirmed.
International traders purchased 2,570 million rupees (8.57 million {dollars}) value rupee bonds within the week.
International traders pulled cash out of fairness funds within the week by July 16 as Trump’s tariff threats and an inflation report indicating a rise in U.S. shopper costs, dampened danger sentiment.
Buyers withdrew a internet $5.3 billion from international fairness funds through the week, Reuters reported.
Sri Lanka suffered an outflow of 10.1 billion rupees within the two weeks quickly after Trump’s tariff declaration within the first week of April and the rupee has fallen barely since then, whereas international traders have been shifting to safe-havens like gold.
The island nation has, nevertheless, loved a complete influx of 29 billion rupees (round $96.7 million) into rupee bonds since December 26 final yr by June July 17, the info confirmed.
Sri Lanka’s deflationary insurance policies have helped to see inflows amid curtailed imports, analysts have stated.
The nation witnessed overseas outflows value 48.2 billion rupees in 2024 with 66 p.c or 78.1 billion rupees value outflow from the federal government securities within the first 9 months of final yr. (Colombo/July 20/2025)
