Foreigners’ holdings in Rupee treasuries continues to climb; hits over Rs. 120 b mark

THE U-shaped recovery in foreign holdings of Rupee-denominated Government securities continued last week, supported by strong demand.

- By WeattHTRusT SECURITIES

A net inflow of Rs. 4.99 billion —a 4% week-on-week increase — was recorded during the week ending 18 September, marking the fourth consecutive week of foreign inflows. As a result, total foreign holdings rose to Rs. 120.28 billion, the highest level in nearly two years (around 21 months), since early December 2023. This trend underscores a robust rebound in foreign investor appetite for domestic Treasury Bills and Bonds, from a low of Rs. 39.38 billion recorded in September 2024.

On Friday (19), S&P Global Ratings upgraded Sri Lanka’s long-term foreign currency debt rating to ”CCC+” from “Selective Default (SD),” while affirming the long-term local currency rating at CCC+, with a stable outlook. The upgrade reflects a steady recovery from Sri Lanka’s 2022 crisis: S&P points to improvements in GDP growth, the external sector, and foreign exchange reserves, alongside progress on debt restructuring.