Categories: World

Sri Lanka’s stock exchange once again forced to halt trading amid heavy losses

<p>
<strong>Amid deepening economic crisis and plummeting liquid stocks, the Sri Lankan stock market halted trading on Monday soon after it opened in about two weeks.</strong></p>
<p>
<a href="https://www.straitstimes.com/asia/south-asia/sri-lanka-stock-trading-halted-after-key-index-slumps">The Strait Times</a> said that Sri Lanka's blue-chip index sank 12.6 per cent, exceeding the 10 per cent drop that would result in an all-day suspension.</p>
<p>
The benchmark Colombo All-Share Index fell as much as 6.7 per cent as investors worry about the nation's economic crisis, the news organisation said. Sri Lanka is in the middle of an unprecedented crisis since 1948—the year it gained independence. An acute shortage of essential items including food, fuel and medicines has hit the country.</p>
<p>
. It has defaulted on its $51 billion external debt amid depleting foreign exchange reserves.</p>
<p>
Last week, the country’s Securities and Exchange Commission (CSE) said in a statement that it is "of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions."</p>
<p>
The ongoing Russia-Ukraine crisis impacting fuel and commodity prices has further hit the island nation’s economy.</p>
<p>
Sri Lanka's total debt burden for this year is $6.9 billion. The next payment deadline of $1 billion is due in July. In January, the country averted a default by repaying $500 million international sovereign bond.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/how-the-rajapaksa-family-s-brazenly-populist-decisions-led-to-sri-lanka-s-economic-meltdown-165757.html">How the Rajapaksa family's brazenly populist decisions led to Sri Lanka's economic meltdown</a></strong></p>
<p>
<strong><a href="https://www.indianarrative.com/economy-news/imf-chief-thanks-india-for-support-to-sri-lanka-as-island-nation-seeks-bail-out-165283.html">IMF chief thanks India for support to Sri Lanka as island nation seeks bail-out</a></strong></p>

IN Bureau

Recent Posts

MEA slams media reports on Pakistani resolution on Indian territories of JK in UN

The Ministry of External Affairs (MEA) issued clarification regarding misleading foreign media reports about a…

8 hours ago

Indian Environmentalist Madhav Gadgil receives UNEP’s Lifetime Achievement Award 2024

The United Nations Environment Programme (UNEP) has awarded prominent Indian Environmentalist Madhav Gadgil with the…

9 hours ago

Ugandan oil project backed by China linked to human rights abuses

The Chinese-backed Ugandan oil project, being developed by China's CNOOC, has been associated with human…

10 hours ago

Israeli fighter jets strike Houthi targets in Yemen: IDF

The Israel Defence Forces (IDF) has announced that Israeli fighter jets struck Houthi targets in…

12 hours ago

Indian Navy Chief fosters camaraderie between India-Indonesia during reception onboard INS Mysore

Chief of Naval Staff (CNS) Admiral Dinesh K Tripathi hosted a deck reception onboard Indian…

12 hours ago

J-K: Two soldiers sustain injuries, five terrorists neutralized in ongoing encounter in Kulgam

Five terrorists have been neutralised by the security forces while two soldiers have sustained injuries…

13 hours ago