Foreign holdings in GS go below Rs 10B for 1st time

By Paneetha Ameresekere | Published: 2:00 AM Nov 16 2020

By Paneetha Ameresekere

Foreign holdings in the Government Securities Market (GSM) comprising Treasury (T) Bonds and T-Bills went under the Rs 10 billion mark for the first time since the partial opening of this sector took place 14 years ago due to nagging insecurity and uncertainty in the local market by foreign investors related to both of its domestic and external sectors.

Consequently foreign holdings in the GSM fell by 14.24 per cent (Rs 1,427.27 million) to Rs 8,594.42 million  week-on-week on Wednesday after a three week hiatus, where in the interim it resisted pressure to go below the Rs 10 billion mark, before ultimately succumbing to pressure in the review week. Meanwhile, the value of foreign holdings in the GSM in the week ended last Wednesday (4) was just above the Rs 10 billion mark, at Rs 10,021.69 million.

In the calendar year to date the GSM has suffered a total net foreign outflow (NFO) of Rs 95,425.9 million or 91.74 per cent of such investments because of this nagging insecurity and uncertainty.  At the beginning of this year, i.e. 1 January, 2020, the value of such foreign investments in the GSM was Rs 104,020.32 million.

By Paneetha Ameresekere | Published: 2:00 AM Nov 16 2020

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