CB increased limits on foreign investment in Govt Securities

The Monetary Board of the Central Bank decided to raise the current threshold for foreign investments in Treasury Bills and Treasury Bonds from 10 percent of the outstanding Treasury Bill and Treasury Bond stock to 12.5 percent.

The investment limit of foreign investments in Government Securities increased with the aim at supporting the growth momentum of the economy by enhancing resource availability, while also easing the domestic savings-investment gap and thereby mitigating any pressure on interest rates, says the Central Bank.

Meanwhile, foreign investors have expressed continued interest in investing in the Government Securities market, as a result of growing uncertainties in advanced economies and greater prospects in emerging economies, the Bank said. The robust growth of credit extended by commercial banks as seen so far during the year is expected to continue, while the Sri Lankan economy grows at a healthy pace, the Bank further said.