“Yes, the inflows are positive and foreigners must be seeing upside potential in the long-term as valuations are attractive. But the levels would be higher if there was greater confidence,” Dr. de Silva opined. He also pointed out that the stock market must be attractive for local investors too and this would only happen if the current issues were resolved.
http://www.ft.lk/2012/08/16/foreigners-see-future-upside-but-more-can-be-drawn/