Sri Lanka Declares 5-day Share Trading Halt Over Economic Crisis

The market was once due to reopen on Monday after being shut all week for the occasion, however the CSE stated it will continue to be closed from Monday to Friday

The Colombo Stock Exchange on Saturday introduced a five-day buying and selling halt after crisis-hit Sri Lanka hiked pastime costs and declared a default on its exterior debt in the course of the standard New Year holiday.

(Reuters)

The market used to be due to reopen on Monday after being shut all week for the occasion, however the CSE stated it will stay closed from Monday to Friday due to the “present state of affairs in the country”.

The cross got here beforehand of Sri Lanka’s deliberate talks with the International Monetary Fund in Washington on Monday to negotiate a bailout as the u . s . a . has run out of overseas trade to finance even the most essential imports.
Brokers had been watching for shares to be hammered on Monday, after the central financial institution nearly doubled its benchmark activity price to 14.5 percentage following the shut on April 8, the ultimate buying and selling day earlier than the holiday.

Faced with an unparalleled foreign exchange crisis, the authorities on Tuesday declared it used to be suspending hobby and capital repayments on its large overseas debt.
The CSE stated that regulators believed it was once in the fine hobby of “market members if they are afforded an probability to have greater clarity and perception of the financial conditions”.
The island kingdom is grappling with its worst monetary downturn for the reason that independence in 1948, with normal blackouts and acute shortages of meals and gasoline in addition to file inflation.
The CSE’s All Share Index has shed over 38 percentage in the previous three months, whilst the Sri Lankan rupee has fallen by means of extra than 35 percentage in opposition to the US greenback in the previous month.

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