Sri Lanka share index crashes below 6,000 point mark

ECONOMYNEXT – Sri Lanka’s benchmark share index crashed below the 6,000 point mark Tuesday with investors concerned over plans by the government to impose a capital gains tax to shore up weak revenues.

The Colombo Stock Exchange’s All Share Index fell below 6,000 points around mid morning and was at 5,933.66 points, down 123.56 points or 2.04 percent in early afternoon trade.

Brokers said investor sentiment was also dented by increasing interest rates and last week’s Fitch Ratings downgrade of the ratings of several state firms and big listed firms after the ratings agency downgraded Sri Lanka’s sovereign rating to B-plus from BB-minus.