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

Iran to hold snap presidential elections on June 28 after President Raisi’s death

Following the tragic demise of Iranian President Ebrahim Raisi in a helicopter crash on Sunday…

1 hour ago

Ancient Indian wisdom rooted in 5000-year-old civilizational legacy: Army Chief General Manoj Pande

Indian Army Chief General Manoj Pande said that the ancient Indian wisdom is rooted in…

2 hours ago

Industry leaders praise India’s tech surge at Hardeep Singh Puri’s ‘Vishesh Sampark Abhiyan’ event

Industry leaders gathered at Union Minister Hardeep Singh Puri's residence for a 'Vishesh Sampark Abhiyan'…

4 hours ago

EAM Jaishankar reaffirms Quad’s commitment to a secure Indo-Pacific

External Affairs Minister (EAM) S Jaishankar said on Monday that the Quad alliance is working…

5 hours ago

US President Biden rejects allegations of genocide against Israel in Gaza

US President Joe Biden said on Monday that what is happening in Gaza is not…

6 hours ago

“Deeply committed to promoting universal respect for freedom of religion”: US on report describing Muslims in India

The US on Monday addressed a recently published news report describing the Muslim community in…

6 hours ago