Sri Lanka to re-base CCPI and NCPI indices
ECONOMYNEXT – Sri Lanka’s shares fell in mid day trade on Tuesday, over the need for further positivity on the International Monetary Fund (IMF) loan being secured, an analyst said.
All Share Price Index (ASPI) fell 0.62 percent or 56.39 points to 9,043.75, while the most liquid index S&P SL20 fell 0.41 percent or 11.64 points to 2,824.98.
“The overall market was pulled down because the market ran on banking shares in the past sessions, but news on domestic debt restructuring moved the market on red today,” an analyst said.
Any domestic debt re-structuring will be part of a negotiation process with creditors, which will take place after a program with International Monetary Fund is in place, Central Bank Governor Nandalal Weerasinghe said.
First financial assurances from bi-lateral creditors have to be received to qualify for the IMF program.
Sri Lanka is expecting to conclude debt re-structuring in about six months, Governor Weerasinghe said.
“We are talking to banks,” he said. “We think we can manage it.”
The market has been driven by macroeconomic conditions after assurances had been passed on by the island nations creditors.
The market generated a revenue of 1 billion rupees within the first hour of trade.
Top losers during 1130 hours were Sampath Bank, Hatton National Bank (HNB) and Atiken Spence. (Colombo/Feb07/2023)