Markets

Sri Lanka stocks end at near 3-wk low after falling five sessions; turnover slumps to 1-mth low

Monday August 29, 2022 6:45 pm

ECONOMYNEXT – Sri Lanka stocks slipped for the fifth consecutive session on Monday (29) to its lowest close in near three weeks with the day’s turnover slumping to a one-month low as most investors stayed on the sidelines ahead of an interim budget debate on Tuesday, brokers said.

The main All Share Price Index (ASPI) fell 0.69% or 60.92 points to 8,732.47, its lowest since August 10.

The market generated 1.2 billion rupees in turnover, the lowest since August 1 and, less than half of this year’s average daily turnover of 3.11 billion rupees.

“Today, most investors moved to the sidelines ahead the budget debate tomorrow. Although there was selling in the market, it was also at a slower pace” an analyst said.

The investors are concerned about the various revenue-based tax hike the government is expected to impose to fulfil for a possible IMF program as well as to get the country out of it’s economic crisis.

Sri Lanka defaulted on its foreign debt on April 12 and deepened an economic collapse into a political crisis. Sri Lanka is facing its worst fuel and economic crisis in its post-independence era. The economy is expected to contract more than 8 percent this year.

The more liquid S&P SL20 index ended 1.15% or 33.07 points down at 2,830.67.

The main index ASPI has gained 12.9 percent in August so far after gaining 5.3 percent in July. It lost 9.3 percent in June, 23 percent in April, and 14.5 percent in March.

The index has lost 28.5 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.

Net foreign inflow was 59 million rupees on Monday. The total net foreign outflow so far this year is 385 million rupees.

Investors are also concerned over the steep fall of the rupee from 203 to 370 levels so far in 2022.

Richard Pieris pushed the index down, closing 6.1 percent weaker at 19.90 rupees a share.

Melstacorp closed 3 percent down at 46.1 rupees a share, and Expolanka fell 1.3 percent to 212 rupees. (Colombo/Aug29/2022)

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Economy

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

Thursday June 1, 2023 7:05 am

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.

Economy

Sri Lanka President discusses debt restructure, program progress with IMF

Thursday June 1, 2023 6:14 am

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)

Energy

Sri Lanka cuts petrol to Rs318 a litre, kerosene to Rs245

Wednesday May 31, 2023 10:29 pm

ECONOMYNEXT – Sri Lanka has cut petrol 92-Octane by 15 rupees to 318 rupees a litre and kerosene by 50 rupees to 245 rupees a litre from midnight May 31, the Ministry of Energy said.

Petrol 95 Octane will be raised by 20 rupees to 385 rupees, and Lanka Super Diesel 4 Star Euro 4 will be raised by 10 rupees to 340 rupees a litre.

Lanka Industrial Kerosene will be cut by 60 rupees a litre to 270 rupees.

Kerosene which is similar to jet fuel is usually the most expensive fuel in international markets followed by diesel and petrol is usually the cheapest.

Kerosene which is substantially cheaper than diesel is also used by buses to cut costs. (Colombo/May31/2023)