Strong foreign inflows to govt. securities, stocks continue

Despite the slower than expected improvement in the current account, the financial account of the balance of payment (BOP) was strengthened during the month of September with continuous foreign inflows, the Central Bank said.

Continuing the positive trend witnessed since March 2017, foreign investments to the government securities market recorded net inflows for the seventh consecutive month reflecting positive investor sentiment.

According to the Central Bank inflows to the government securities in September stood at US$187 million, up from US$ 125 million in September 2016 and the cumulative number for the first nine months stood at US$1.26 billion, up from US$1.16 billion. In addition, long-term loans to the government increased on a net basis during the first nine months of the year. Government received US$111 million in long-term loans in September against US$84 million and for the nine months the figure stood at US$956 million, up from US$921 million.

Meanwhile, foreign investments in the Colombo Stock Exchange (CSE) recorded a net outflow during September mainly due acquisition of the controlling stake of Singer Sri Lanka by Hayleys from its foreign owners.

However, inflows to the CSE in the first nine months of the year stood at US$266 million against and outflow of US$19 million in the corresponding period, last year.
The apex investment promotion agency in the country recently said foreign direct investment had reached US$ one billion mark and by the end of the year the figure will touch US$1.5 billion.