Foreign inflows robust in January

Wednesday, 3 April 2013 01:19 - - {{hitsCtrl.values.hits}}

The Central Bank disclosed yesterday foreign inflows in January had remained robust.

Earnings from tourism grew at a healthy rate of 20.5% when compared with the corresponding month of 2012, to $ 107 million. Workers’ remittances amounted to $ 524 million in January 2013, compared to $ 473 million in January 2012, thus recording a year-on-year growth of 10.8%. In January 2013, net sales by foreign investors at the Colombo Stock Exchange (CSE) amounted to $ 10.4 million whereas net foreign purchases amounting to $ 4 million were recorded in January 2012. However, there has been a noticeable increase in transaction volumes at the CSE in January 2013, when compared with the corresponding month of January 2012.

Meanwhile, there have been significant inflows of foreign investments to the Government securities market, with net inflows to Treasury bills and Treasury bonds amounting to $ 289 million during January 2013 compared to a net inflow of $ 170 million in January 2012. Further, in January 2013, long-term loans obtained by the Government amounted to $ 125 million.

Gross official reserves amounted to $ 6,855 million by end January 2013, while total international reserves which include gross official reserves and foreign assets of commercial banks, amounted to $ 8,538 million by end January 2013. In terms of months of imports, gross official reserves were equivalent to 4.4 months of imports by end January 2013, while total reserves were equivalent to 5.5 months of imports.