Foreign holdings of rupee Treasuries exceed Rs. 160 b, near 36-month high

Liquidity remains heavily plus at Rs. 299 b; highest level in over 11 years T-Bill rates drop for 4th straight week at auction Rs. 51 b T-Bond auction records bullish outcome Secondary Bond market extends rally; yields trend lower

- By WEALTH Trust SECURITIES

FOREIGN holdings of rupee-denominated Government securities rose for a third consecutive week, recording a sizeable net inflow of Rs. 9.21 billion and surpassing the Rs. 160 billion mark. As a result, total foreign holdings increased to Rs. 63.23 billion during the week ended 12 February, reflecting a 6% week-on-week increase and reaching the highest level in nearly two-and-a-half years, since early August 2023.

In the money market, the total outstanding liquidity surplus in the inter-bank market continued to remain elevated and stood at Rs. 299.68 billion as at the week ending 13 February 2026, increasing from Rs. 275.19 billion recorded in the previous week. Liquidity was seen rising to the highest level in over 11 years — since 23 January 2015. This in turn saw the weighted average interest rates on Call Money and Repo to drop lower to 7.66% and 7.70%, respectively, at the close of the week ending 13 February against its previous week’s closings of 7.70% and 7.75%. Interestingly on Friday, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 20 billion by way of overnight repo auction at a weighted average rate of 7.65%.