 established two milestones in the week ended Tuesday (11 April 2023), Central Bank of Sri Lanka’s (CBSL’s) most recent data released){kind=link}
The Government Securities Market (GSM) established two milestones in the week ended Tuesday (11 April 2023), Central Bank of Sri Lanka’s (CBSL’s) most recent data released on the following day Wednesday (12 April) showed.
They were enjoying the highest weekly net foreign inflows (NFIs) into the GSM after at least 10 years according to available CBSL statistics and the other, total NFIs enjoyed by the GSM passing the Rs 100 billion mark after more than three years.
This took place when NFIs into the GSM week on week (WoW) to Tuesday increased by 38.59 per cent (Rs 28,523 million) to Rs 102, 431.70 million (Rs 102.43 billion) CBSL data showed. Prior to the week ended Tuesday’s NFI, the highest NFI that the GSM enjoyed according to available CBSL data was nearly seven years ago, ie in the week ended 20 July 2016 where it enjoyed an NFI of Rs 19,011.5 million, thereby increasing NFIs into the GSM then by 7.31 per cent, WoW to 279,013.94 million.
Meanwhile, prior to Tuesday, the last time NFIs into the GSM passed the Rs 100 billion mark was in the week ended 19 February 2020 where it recorded a figure of Rs 102,663.53 million (Rs 102.66 billion), in a period where it suffered WoW NFOs before falling to a recent trough of Rs 1,753.19 million (Rs 1.75 billion)22 months later in the week ended 22 December 2021 when Ajith Nivard Cabraal was CBSL Governor, CBSL statistics showed.
The current euphoria vis-à-vis NFIs into the GSM is led by a high interest regime coupled with a stable rupee, whereas the euphoria caused on 20 July 2016 was due to the confidence engineered in the market after then President Maithripala Sirisena appointed Dr Indrajit Coomaraswamy as CBSL Governor in July 2016, replacing his controversial predecessor Dr Arjuna Mahendran.