Foreign investments in the local bond market have exceeded Rs. 150 billion. Some 150 foreigners and more than 65,000 locals have invested in the government security bonds.
Ranjith
Siyambalapitiya |
This has resulted in increased competition and a gradual reduction of interest rates. The significant feature is that the foreign investors are investing in the government security bonds even when the interest rates have gone down by 10-13 percent. This shows that investors have confidence in the country.
The fluctuation of interest rates in the bond market directly affects both local and foreign investors. Foreign investors take a bigger risk when they invest in security bonds with fluctuating interest rates.
In spite of this risk, both local and foreign investors have come forward to invest in our bonds. With the increase of foreign investments in government bonds, the interest rates have dropped and as a result the interest payments have also come down.
This situation will positively improve the budgetary activities in the country. Furthermore, a number of foreign investments have also led to stabilizing the local market as well as foreign exchange market, enabling the country to march towards economic growth. |
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