Sri Lanka’s stock market closes weaker

COLOMBO: Sri Lanka’s stock market closed weaker on Monday dampened by economic woes and a looming debt crisis, brokers said.

The main All Share Price Index (ASPI) fell 1.03 percent or 130.91 points to close at 12,631.69 points.

“Investors expect the central bank will allow the market interest rates to rise to defend the currency and curb inflation,” an analyst said.

“The excess money printing has caused the pressure on the exchange rate and the central bank has to increase the rates if it wants to defend the currency at the current level.”

First Capital Market Research said in a note that the index skid as ambiguous investors resorted to book profits in selected counters over rising uncertainties in the economy.

S&P SL20 of the more liquid index down 1.22 percent or 52.90 points to 4,280.86.

Foreign investors, who are highly worried about possible sharp depreciation or devaluation in the currency, sold a net of 457.1 million rupees.

The foreign sales so far this year has been 3.4 billion rupees.

In 2021, the Sri Lanka stock market suffered a net foreign outflow of 50 billion rupees.

Analysts had predicted that the economic concerns would drag the market from time to time until the government finds a sustainable solution for the country’s looming debt crisis.