This was primarily due to the 57.8-per cent expansion in non-residents’ net investments in debt instruments to $897 million from $568 million a year ago, the country’s central bank said in a release.

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Meanwhile, non-residents’ net investments in equity capital (other than reinvestment of earnings) and reinvestment of earnings contracted by 52.5 per cent and 8.1 per cent to $85 million (from $180 million) and $66 million (from $72 million) respectively in the month.

Equity capital placements during the reference month originated largely from Japan and the United States. These were channeled primarily to the manufacturing, real estate and construction industries.

These developments brought the cumulative FDI net inflows to $7.6 billion in the first eleven months last year, albeit lower by 13.3 per cent YoY.

Notwithstanding the country’s sustained economic growth, FDI remained subdued due to the lingering impact of high inflation and low growth prospects globally, the central bank added.

Fibre2Fashion News Desk (DS)