Foreign investors returned as net sellers on the Colombo Stock Exchange on Wednesday, just one session after breaking a 21-day selling streak with a Rs. 19.8 million inflow, according to Asia Securities Research.
Net foreign outflow for the day amounted to Rs. 2.52 billion, driven by trades in Softlogic Life, Ceylon Tobacco, and Hayleys Fabric, Daily FT reported. The month-to-date net foreign outflow widened further in April, and year-to-date net outflows now stand at Rs. 25 billion — up from roughly Rs. 22.4 billion a day earlier.
The quick reversal suggests Tuesday’s break in the selling run was a one-session pause rather than an inflection point. Foreign portfolios remain structurally lighter on frontier markets, with Middle East geopolitical risk and Hormuz shipping uncertainty continuing to weigh on risk appetite even as Washington has extended the Iran ceasefire indefinitely.
Domestic investors have largely absorbed foreign selling through April. Benchmark indices remain positive for the month, with the All Share Price Index and the S&P SL20 both holding gains driven by local institutional and retail demand rather than foreign inflows.
The Rs. 25 billion YTD figure is among the largest foreign net outflows recorded at the CSE in the first four months of any year in recent memory. Asia Securities’ data point was echoed by front-page coverage in Daily FT on Thursday morning.
