Foreign inflows on the rise

Friday, 3 May 2013 03:24 - - {{hitsCtrl.values.hits}}

The Central Bank yesterday revealed that foreign inflows continue to improve on the back of healthy performance last year.

Tourist arrivals in February 2013 increased by 11.6%, year-on-year, to 93,232, while earnings from tourism grew at a healthy rate of 20.7%, year-on-year, to $ 103 million. Recording a year-on-year growth of 4.2%, workers’ remittances amounted to $ 490 million in February 2013. In comparison, workers’ remittances amounted to $ 470 million in February 2012.

In February 2013, net inflows to the Colombo Stock Exchange (CSE) amounted to $ 8.7 million compared to the net inflow of $ 16.3 million recorded in February 2012. Meanwhile, there have been substantial inflows of foreign investments to the Government securities market.

Net inflows to Treasury bills and Treasury bonds amounted to $ 212 million during February 2013 compared to a net inflow of $ 229 million in February 2012. On a cumulative basis net inflows to Treasury bills and Treasury bonds amounted to $ 501 million by end February 2013, compared to $ 400 million in the corresponding period in 2012.

Further, in February 2013, long-term loans obtained by the Government amounted to $ 132 million, while long-term loan inflows to the Government on a cumulative basis amounted to $ 278 million by end February 2013, compared to $ 240 million by end February 2012.

Gross official reserves amounted to $ 6,670 million by end February 2013, while total international reserves which include gross official reserves and foreign assets of commercial banks, amounted to $ 8,144 million by end February 2013. In terms of months of imports, gross official reserves were equivalent to 4.3 months of imports by end February 2013, while total reserves were equivalent to 5.3 months of imports.