ECONOMYNEXT – Sri Lanka shares closed down on Monday due to uncertainty among investors after an IMF report highlighted shortcomings in the country’s situation.
The main All Share Price Index was down 1.52 percent or 171.85 points to 11,163.76, while the more liquid S&P SL20 was down 1.39 percent or 44.40 points to 3,153.32.
Turnover was 686 million. Trading in capital goods (208,127,274), and banks (111,567,224) drove turnover.
Sampath Bank, Commercial Bank, and Ceylinco Insurance traded down in the day.
The market saw a net foreign outflow of 70 million.
The IMF review concluded last week and the subsequent report highlighted many unresolved issues in the country.
Sri Lanka’s frequent tax changes, discretionary tax holidays, state enterprises and public procurement drove corruption, amid concerns around the integrity of the judiciary itself, a corruption diagnosis by the International Monetary Fund found.
Sri Lanka customs and tax officials have themselves acknowledged there is “rampant state of corruption in their institutions with little risk or consequence of exposure,” according to the IMF corruption diagnostic report. (Colombo/Oct2/2023)