Sri Lanka received inward foreign remittances totaling nearly US$.900 million invested in Treasury Bonds and Bills in the first three days of last week, Prof. G.L. Peiris, Minister of Internal Trade and Export Development said yesterday.

"On Monday there was an inflow of US$ 270, US$ 297 on Tuesday and US$ 300 on Wednesday totaling US$ 867," he said.

He noted that this was nearly three times the first tranche received under the IMF stand-by facility in end July amounting to almost US$ 317 million or 206 SDR.

The IMF facility will be received in eight equal installments ending on March 15, 2011, and is the largest ever granted by the Fund since Sri Lanka obtained membership of the IMF on August 29, 1950.

Peiris described the foreign inflows last week as a "powerful vote of confidence, here’s the proof of it."

He regarded these inflows as an index of the strength and reliability of the Sri Lanka economy which was considered bankable by the world outside as evidenced by the large inflows from hedge funds.

Sri Lanka’s reserves at the end of last month stood at US$ 3.2 billion which was the highest threshold in recent months.

Peiris said that the Sri Lankan public exposed to high interest rates for a long time can now anticipate the direct benefit of lower rates.

The problem of high interest was addressed when legislation presented to parliament last week through the Secured Transaction Bill which enables borrowers to pledge movable property against borrowings without having to offer security of immovables like land.

Peiris said that the unfolding developments were indicative of the stability of the economy both externally and domestically and was optimistic that a significant downward trend in interest rates could see Treasury Bill rates coming down to 9% by the end of this year.