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Foreign investors buy into Sri Lanka bonds
Apr 18, 2016
ECONOMYNEXT - Foreign investors had bought 5.6 billion rupees worth Sri Lanka rupee bonds over the week ending April 12, reversing a trend of heavy sell-downs seen in 2016, official data showed.
Foreign investor holdings in rupee bonds rose to 228.9 billion rupees in the week to April 12, up from 223.2 billion rupees a week earlier, central bank data showed.
Since a low of 220 billion rupees hit on March 23, foreign investors have been net buyers in the market.
Foreign investor started to flee Sri Lanka after a rate cut in April 2015 generated monetary instability in Sri Lanka amid emerging market jitters.
Renewed selling was seen in early 2016.
Sri Lanka is expected to announce a preliminary deal with the IMF in the coming days.
The deal is expected to have foreign reserve targets and budget targets.
EN's economist analyst Bellwether says if there is Net International Reserve Target (NIR) without progressively falling ceilings on Net Domestic Assets (NDA) of the central bank, Sri Lanka's rupee could depreciate further. (Colombo/Apr18/2016)