Monday Jun 15, 2026
Monday Jun 15, 2026
Monday, 15 June 2026 06:20 - - {{hitsCtrl.values.hits}}
Foreign investor holdings in Sri Lanka’s rupee-denominated Government securities recorded a marginal increase during the week ended 11 June, snapping a five-week streak of net outflows, according to latest data released by the Central Bank of Sri Lanka (CBSL).
CBSL data showed that foreign holdings of Treasury Bills and Treasury Bonds rose by Rs. 13 million during the week to Rs. 121.34 billion.
The inflow, though modest, marked a reversal from the persistent foreign selling seen in recent weeks. Foreign holdings had stood at Rs. 144.2 billion five weeks earlier, indicating a cumulative net outflow of Rs. 22.86 billion over the intervening period despite the latest week’s gain.
Compared with the beginning of 2026, foreign holdings have declined by Rs. 19.96 billion from Rs. 141.3 billion, reflecting continued caution among foreign investors towards Sri Lankan rupee assets.
The data also highlights the limited role foreign investors currently play in the domestic Government securities market. As of 11 June, foreign holdings of Rs. 121.34 billion accounted for only around 0.66% of the outstanding Government securities stock of Rs. 18.4 trillion.
This compares with a foreign holding ratio of approximately 0.77% five weeks earlier, when foreign investors held Rs. 144.2 billion against an outstanding Government securities stock of Rs. 18.7 trillion. At the start of the year, foreign holdings represented about 0.76% of the Rs. 18.7 trillion outstanding stock.
The decline in the foreign holding ratio despite Sri Lanka’s improving macroeconomic indicators suggests overseas investors remain cautious, with global risk aversion, geopolitical tensions, and limited liquidity in frontier markets continuing to weigh on inflows.
