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In the last 3 weeks, foreign investors have invested close to a net of US0mn into Sri Lanka's bonds.
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This comes on the back of close to a billion dollar outflow in 2018.
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Stability has returned to Sri Lanka's economy after constitutional democracy was strongly upheld amid moves to execute an illegal transfer of governmental power.
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Confidence in Sri Lanka's government and Prime Minister Ranil Wickremesinghe is starting to exhibit itself in Sri Lanka's capital markets.
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Bond investors, often termed the 'smart money' have made an aggressive move back into Sri Lanka, while foreign equity investors continue to exit. Inflows into Sri Lanka's bond market are likely one of the key factors which have lead to a 3% surge in Sri Lanka's currency (LKR) versus the dollar 2019.
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Analysts expect more inflows if Sri Lanka is able to execute a successful sovereign bond offering.
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#SriLanka capital market enjoined once again with Net inflow of LKR 11.5Bn (appro. $ 65Mn) to LKR denominated Government Bond market during this week. During last three weeks foreigners have invested net LKR 17.18Bn ( $ 97Mn) in to Gov. Bonds. pic.twitter.com/ksWnIuwlbJ
— Sanjeewa Dayarathne (@DayarathneSa) February 8, 2019