Foreign investors sold over $28 million worth Sri Lanka government securities in the week on April 10, the Central Bank data showed, amid jittery after U.S. President Donald Trump’s reciprocal tariff announcement early this year.
The rupee has fallen slightly since Trump’s declaration while global investors have been shifting to safe-havens like gold.
Sri Lanka saw 8.67 billion rupees ($28.7 million at 1 US dollar = 298 LKR) worth outflows from the government securities in the week ended on April 10 after enjoying a total inflow of 28.6 billion rupees ($95.6 million) since December 26 last year, the data showed.
The dollar and U.S. Treasuries have taken a beating as Trump’s tariffs, plus a 145% duty on China, took effect, while China swiftly retaliated. In contrast, safe-haven favourites such as gold and the Swiss franc continue to pull in cash.
The island nation witnessed total inflows of 29.9 billion rupees into treasury bonds and bills in the 15 weeks through December 26, the official data showed.
The value of government securities held by foreign investors was at 69,262 million rupees by December 26.
Sri Lanka’s deflationary policies have helped to see inflows amid curtailed imports, Analysts have said.
The country witnessed foreign outflows worth 48.2 billion rupees in 2024 with 66 percent or 78.1 billion rupees worth outflow from the government securities in the first nine months of last year.