The Government Securities Market (GSM) enjoyed the largest net foreign inflow (NFI) after a near 32- month hiatus due to the return of investor confidence to the local financial markets led by favourable developments from the West and Japan towards President Ranil Wickremesinghe and his SLPP Government, sources told Finance Today on Saturday (17 September).
Consequently the GSM enjoyed an NFI of Rs 2,982.12 million in the week ended Wednesday (14 September), lifting total NFIs as a whole to a more than a 21-month high of Rs 7,924.26 million; Central Bank of Sri Lanka (CBSL) data of Friday’s (16 September) showed.
A higher figure than this was last achieved in the week ended 2 December 2020, where the total NFI value enjoyed by the GSM by then was Rs 8,573.72 million. Meanwhile, prior to the Rs 2,982.12 million NFI enjoyed by the bourse in the week ended Wednesday, the highest NFI value it had enjoyed was a number of Rs 4,950.50 million which took place in the week ended 22 January 2020.
Nonetheless, the country’s foreign reserves, led by the payments for essential imports fell to a nine month low, declining by 5.56 per cent (US$ 101 million), August 2022 over July 2022 to $ 1,716 million; data showed. A figure lower than this last took place in November 2021, where the country’s foreign reserves returned a figure of $ 1,588.4 million, statistics further showed.
By Paneetha Ameresekere