ECONOMYNEXT – The Colombo Stock Exchange closed up on Monday with both indices staying green due to positive investor sentiment carried over from last week’s news of the IMF staff level agreement and China’s assurances of support to Sri Lanka.
The All Share Price Index was up 0.11 percent or 11.58 points to 10,862.11, while the S&P SL20 was up 0.18 percent or 5.59 points to 3,055.80.
Turnover was at 1 billion.
Sampath Bank, Ceylon Tobacco, Sri Lanka Telecom saw shares gain in the day.
“Investors seem to have a positive mindset,” an analyst said.
“There was some selling pressure on the primary dealing counter because the First Capital Treasuries share dividend finished so the share has been falling. There has been selling pressure, which is influencing the other two shares also to come down – that is, First Capital Holdings, and Capital Alliance Treasuries.”
The International Monetary Fund (IMF) announced it had reached a Staff Level Agreement with the Sri Lankan authorities on economic policies to conclude the first review of the 48-month Extended Fund Facility.
The conclusion of the review would allow Sri Lanka to access a second tranche of US$330 million in financing once the review is approved by the IMF Executive Board.
Meanwhile, the Export-Import Bank of China also said it had reached a preliminary agreement with Sri Lanka on debt treatment.
On Friday Sri Lankan president Ranil Wickremesinghe met Chinese president Xi Jinping and Vice Premier Ding Xuexiang who assured China’s – Sri Lanka’s biggest creditor – support in debt restructuring.
A joint statement issued by the leaders read: “The Chinese side is willing to work with relevant countries and international financial institutions to keep playing a positive role in helping Sri Lanka address its current difficulties, alleviate debt burden and realize sustainable development.” (Colombo/October23/2023)