Inflation ( CCPI)50.6% (Feb 2023)
GDP-12.4% (4Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate25.99%
12M T-Bill Rate24.31%
5Y T-Bond Rate27.00%/ 27.25%
10Y T-Bond Rate22.00% / 23.00%
USD/LKR335/341
Click on the chart for more details
Reserves $2.22Bn (Feb 2023)
Cum. Trade Deficit $449Mn (Feb 2023)
Cum. Fiscal DeficitLKR 1,601Bn (Nov 2022)

Foreign holdings in domestic debt marginally up in the last week

Bank & FinanceMar 2, 2023
Foreign holdings in domestic debt marginally up in the last week
This story is available exclusively to charts.lk subscribers. Become an member and start reading now.

Foreign investments in domestic debt such as T-Bills and T-Bonds have fallen dramatically since 2018 and fell to a bear minimum level in 2022. Renewed interest in buying domestic debt emerges from time to time among foreigners.

The exchange rate needs to be stabilized for foreigners to invest in domestic debt targeting a major interest rate gain against investing in foreign currency debt.

The buying interest is hampered due to the uncertainty of the IMF rescue package and domestic debt restructuring.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.