ECONOMYNEXT – The Colombo Stock Exchange closed down on Thursday, as investors shifted interest to fixed deposits and commercial paper following Sri Lanka’s rate hike, brokers said.
The All Share Price Index closed down 1.14 percent, or 250.79 points, at 21,760; while the S&P SL20 closed down 1.08 percent, or 66.10 points, at 6,031.
Market turnover was 2.78 billion rupees.
“After the rate hike, there is a low level of interest in the market,” Dimantha Mathew, Chief Research and Strategy Officer at First Capital Holdings PLC, said.
Funds were flowing to fixed income assets, he said. “Commercial paper is at 15 percent.”
Even though most earnings posted showed good results, there was no great reaction among investors, he said.
“There’s less buying interest. Fund managers are selling down some stakes.”
The CSE has continued to close down this week, after the central bank hiked rates last week.
Treasury bill and binds yields have spiked. Some banks, notably Commercial Bank, have raised term deposit rates.
Top negative contributors to the ASPI were Dialog (down 1.90 rupees at 40.90), Commercial Bank (down 2.75 rupees at 202.25), Melstacorp (down 2.75 rupees at 182.25), HNB (down 4.50 rupees at 390.50), and Cargills (down 16.50 rupees at 668.25).
Mercantile Investment and Finance said it had listed 33,400,000 ordinary voting shares after its rights issue to raise 1.1 billion rupees.
United Motors Lanka announced a dividend of 40 cents a share. (Colombo/Jun4/2026)