Colombo stock index down 2% in first 2 weeks

COLOMBO: Sri Lanka shares edged down on weak macroeconomic sentiments on constant delays on the International Monetary Fund (IMF) loan that was supposed be acquired by the first quarter of 2023, analyst said.

“Bourse closed the week on a negative note as investor sentiment weaken over a possible delay in debt restructuring talks with bilateral creditors and a downgrade of Sri Lankan banks’ ratings by Fitch,” First Capital Market Research said in it’s daily note.

“Accordingly, selling spree emerged on major banks where COMB largely dragged the index down.”

The main All Share Price Index (ASPI) closed at 0.86 percent or 71.47 points lower at 8,262.58.

The index has already lost 1.9 percent within the first two weeks of trade.

Standard Chartered report said that the debt restructuring could be pushed back to end-2023 due to delays in the IMF programme.