Foreign investors have extended their sell-off of Sri Lanka’s rupee-denominated bonds, marking a second consecutive week of net outflows from the domestic debt market.
The sustained retreat underscores cautious positioning among offshore market participants, who have continued to trim exposure to local currency government paper across back-to-back trading periods.
Key Developments
- Foreign investors offloaded Sri Lankan rupee bonds for the second consecutive week.
- Back-to-back weekly outflows demonstrate sustained foreign capital reduction in domestic government debt.
The successive rounds of divestment keep foreign participation in local currency debt constrained, reflecting prevailing risks and evolving appetite for emerging market sovereign assets.