Shares of Expolanka, Commercial Bank, Senkgalada Finance fall

COLOMBO: Sri Lanka’s main share index closed lower to its more than three week low with investors adopting a wait and see approach as concerns over securing the International Monetary Fund (IMF) loan, analysts say.

All Share Price Index (ASPI) fell 1.65 percent or 147.76 points to 8,790.72, its lowest since January 20 and the bourse saw foreign outflow on a net basis for the first time since January 25.

Foreign sold a net 59.5 million rupees worth shares on Monday.

However, they have bought a net 3.7 billion worth of shares so far this year.

“Investors still don’t have the confidence on receiving the IMF loan soon,” a stockbroker said.

“More the time the government take to finalize the IMF deal, we will see more uncertainties developing in the stock market given the returns on fixed income are high.”

Top losers were Expolanka, Commercial Bank and Senkgalada Finance.

Sri Lanka still needs assurances from China for the IMF loan approval from the global lender’s Board.

The loan was originally expected in December last year, but now it is expected in the second quarter, government officials who are aware of debt restructuring say.

The Ceylon Chamber of Commerce, has urged the IMF to proceed with the re-structuring undertakings already given by India and the Paris Club while requesting China for full assurances.

India and the Paris Club has given specific assurances to re-structure the sovereign debt defaulted Sri Lanka;’s external borrowing.

China has offered a two year moratorium and re-structure debt during that time, but some countries including the US have asked China to specific assurances.

The most liquid index S&P SL20 closed down at 2.22 percent or 61.06 points to 2,695.36.

The market saw a turnover of 1.2 billion rupees today, lower than this year’s daily average of 1.8 billion rupees, and significantly down from the 2022 average turnover of 2.9 billion rupees.