ECONOMYNEXT – Sri Lanka shares closed up on Thursday on interest in the banking sector after favorable performance indications combined with anticipations on lowered rates and better economic outlooks on investment, an analyst said.
The main All Share Price Index was up 0.35 percent or 37.29 points to 11,425.69, while S&P SL20 was down 0.44 percent or 14.64 points to 3,299.99.
Sri Lanka President Ranil Wickremesinghe has said debt restructuring is matter involving public finances coming under parliament and not courts, and has called opposition groups not to disrupt the process through legal action, a statement said.
Sri Lanka’s Employees Provident Fund will not take up an offer to exchange rupee bonds until a tax is hiked on superannuation funds, lawyers said in a preliminary court hearing on domestic debt restructure.
Sri Lanka has extended a deadline to restructure the rupee debt of the Employees Provident Fund to August 28 from August 11, the Finance Ministry said.
“Following further feedback from Eligible Holders, in accordance with the terms of the Invitation to Exchange, the Republic today announces certain amendments to the timeline for the Invitation to Exchange,” the statement said.
The offer to exchange debt would now expire on August 28.
Announcements would be made on August 29.
A team from the International Monetary Fund will be in Sri Lanka from September 14 to 27 to conduct the first review of an Extended Fund Facility arrangement, a spokesperson said.
The review will be conducted on June data.
Officials have said Sri Lanka has over-achieved key IMF quantitative performance criteria though tax revenues, which is an indicative target has fallen short.
Sri Lanka also has met several structural benchmarks, some of which are under World Bank and Asian Development Bank prior actions.
The market generated a turnover of 4.6 billion rupees, majority of the revenue was brought in from the diversified financials counter which brought in 1.4 billion rupees in revenue, while the banking sector brought in 1.3 billion rupees and the yearly average stands at 1.9 billion rupees.
“There is an assumption that earnings reports will be favorable, channeling continuous interest in the market,” an analyst said.
Gainers during trade were Central Finance, DFCC Bank and Sampath Bank.
The market saw a net foreign inflow of 31 million rupees, while the yearly net foreign inflow was 4.2 billion rupees. (Colombo/Aug16/2023)