An Echelon Media Company
Thursday June 1st, 2023

Sri Lanka shares rise for third day over business mogul’s MP appointment

ECONOMYNEXT – Sri Lanka stocks gained 0.22 percent on Friday (10), rising for the third session, driven by the speculations that top corporate leader Dhammika Perera who is a chairman and director in a number of listed companies was to fill the ruling party national list fell vacant after the resignation of former finance minister Basil Rajapaksa, brokers said.

After the market closed, Perera’s name was gazetted as a parliament MP by the island nation’s Election Commission

“As yesterday, still the market is moving on the news of Dhammika Perera’s possible entry to the parliament,” a top market analyst said.

“However, the market is still moving on lots of economic and political uncertainties, so it is more likely a short term people’s market at the moment.”

The All Share Price Index (ASPI) closed 17.66 points firmer at 7,898.79.

Former finance minister Basil Rajapaksa, resigned on Thursday, a month after his elder brother and former prime minister Mahinda Rajapaksa resigned from his post.

Perera on Friday (10) tendered his resignation from the boards of directors of several public limited companies of which he holds shares, a Colombo Stock Exchange (CSE) filing showed.

As per the CSE filing, Perera has resigned from the boards of directors of Hayleys PLC (of which he directly and indirectly holds 51.01 percent of shares), Singer (Sri Lanka) PLC, Hayleys Fabric PLC, Hayleys Leisure PLC, Haycarb PLC, and The Kingsbury PLC.

Friday’s turnover was 1.3 billion rupees, close to a third of this year’s average 3.7 billion rupees.

The more liquid S&P SL20 index fell 0.28 percent or 7.17 points to 2,560.57.

Foreign investors bought a net 4.8 million rupees’ worth of shares on Friday. The market has witnessed a total foreign outflow of 951 million rupees so far this year.

The market has so far lost 2.4 percent in June after gaining 6 percent in May. It lost 23 percent in April and 14.5 percent in March.

The market has lost 35.4 percent so far this year after being one of the world’s best stock markets with an 80 percent return last year when large volumes of money were printed.

Sri Lanka’s sovereign default has already led it to restricted/selective default rating by rating agencies and weighed on investor sentiment.

Investors are also concerned over the steep fall of the rupee from 200 to 370 levels so far in 2022.

All Share Price Index was mainly pushed up by Lanka IOC, which gained 8.8 percent to 70.50 rupees a share.

Vallibel One rose 9.3 percent to 37.30 rupees a share, while Aitken Spence gained 4.6percent to 85 rupees a share. (Colombo/June 10/2022)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka cuts policy rates 250 basis points

ECONOMYNEXT – Sri Lanka cuts policy rates 250 basis points lowering the rate at which liquidity is injected to markets to 14.0 percent to from 16.50 percent, saying inflation was falling faster than expected.

“The Board arrived at this decision with a view to easing monetary conditions in line with the faster than expected slowing of inflation, gradual dissipation of inflationary pressures and further anchoring of inflation expectations,” the central bank said.

“The commencing of such monetary easing is expected to provide an impetus for the economy to rebound from the historic contraction of activity witnessed in 2022, while easing pressures in the financial markets.”

“Headline inflation (year-on-year), based on the Colombo Consumer Price Index (CCPI), continued the deceleration path, faster-than-projected earlier, supported by the lagged impact of tight monetary and fiscal policies, strengthening of the Sri Lanka rupee, reduction in fuel and gas prices, normalisation of food prices and the favourable impact of the statistical base effect.

“The full passthrough of the large appreciation of the exchange rate observed recently is yet to be
reflected in the price levels, and it would quicken the disinflation process, as the prices of
imported goods are expected to decline further in the period ahead.”

Continue Reading

Sri Lanka exports down in April, trade deficit up from March, rupee stronger

ECONOMYNEXT – Sri Lanka’s exports fell 12.6 percent from a year ago to 849 million US dollars in April 2023, amid weaker external demand, while imports were down 15.8 percent to 1,431 million Us dollars, central bank data showed.

Exports also fell 1,037 million dollars in March 2023, amid seasonal effects.

The trade deficit expanded to 583 million US dollars in April from 412 million US dollars in March 2023. Imports were at 1431 million US dollars in April from 1,450 million dollars in March.

Imports can pick as tourism, worker remittances and net inflows to government go up.

The rupee continued to appreciate.

“Exchange rate showed a notable appreciation during April 2023 with the continued improvement in liquidity in the domestic foreign exchange market, the discontinuation of the daily guidance on exchange rates,” the central bank said.

Up to April exports were down 9 percent to 3.8 billion rupees and imports were down 28 percent to 5.2 billion rupees and the trade deficit was 1.4 billion rupees.

Investment goods imports were down in April amid a contraction in credit.

“Almost all types of goods listed under the three main investment good categories, namely machinery and equipment, building material and transport equipment, recorded a decline,” the central bank said.

Continue Reading

Sri Lanka President discusses debt restructure, program progress with IMF

ECONOMYNEXT – Sri Lanka’s President Ranil Wickremesinghe has discussed progress of International Monetary Fund program and debt restructuring during a visit of Deputy Managing Director Kenji Okamura, statement said.

“The discussion primarily focused on the progress of the IMF program between Sri Lanka and the IMF,” a statement from President’s office said.

“Attention was also paid to the on-going debt restructuring negotiations.”

State Minister of Finance Shehan Semasinghe, Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayake was also in the meeting.

Secretary of the Ministry of Finance Mahinda Siriwardena, Central Bank Governor Nandalal Weerasinghe, Deputy Director of the International Monetary Fund Anne Marie Gulde, and Resident Representative IMF in Sri Lanka Sarwat Jahan, attended this event. (Colombo/June01/2023)

Continue Reading