Thursday, 11 April 2019 06:38

Sri Lanka foreign investment outflow continues amidst increased inflow

Sri Lanka Central Bank says the trend of foreign investment outflows from the secondary market of Colombo Stock Exchange continued recording a net out flow of US$ 33.5 million up to April 5 this year.

Increased inflows to the Government securities market were observed (USD 239 mn) in 2019 recording a net inflow of US$ 42 million up to 03 Apr 2019 .

Central Bank said foreign currency outflows together with import expenditure exerted pressure on the domestic foreign exchange market in the month of March.

The Central Bank purchased foreign exchange over $150 million on a net basis so far in 2019 (2018: net sales of USD 1,120 mn)

Gross Official Reserves, recorded at $ 6.0 billion at end Feb 2019, are estimated to have increased to$ 7.6 billion (end March 2019) with the International Sovereign Bond issuance and purchases from the market.

Sri Lanka ’s tourism earnings grew by 5.9 percent Year-on-Year (YoY) to US$ 1.39 billion in the first quarter of the year, according to Central Bank (CB) estimates.

The growth in tourist arrivals averaged to 4.6 percent in the first quarter with 740,600 foreigners visiting the island nation.

In March, the country earned US$458.6 million from tourism, up 6 percent from US$ 432.8 million a year earlier.

Tourist arrivals grew moderately at 4.7 percent YoY in March to 244,328 visitors amidst a notable decline in arrivals from Northern and Western European countries.

Meanwhile, the CB data showed the workers’ remittances declining by 12.4 percent (YoY) to US$ 500.5 million in February. The cumulative the workers’ remittances during first two months of the year also declined by 19 percent YoY to US$1.04 billion.

In 2018, the workers’ remittances retained its position as the top foreign exchange earner for the country by bringing over US$7 billion foreign exchange to the country.

(LI NEWS)

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