HomeAsiaSri Lanka exchange halts again after 13% plunge

Sri Lanka exchange halts again after 13% plunge

COLOMBO: Crisis-hit Sri Lanka’s inventory exchange halted again Monday (Apr 25) after an almost 13 per cent plunge, derailing the bourse’s tentative reopening after a two-week break aimed toward forestalling a market collapse.

The island nation is grappling with its worst financial downturn since independence in 1948, with months of normal blackouts and acute shortages of meals and gas.

Equities have shed almost 40 per cent of their worth since January, with the native foreign money falling by an identical quantity in opposition to the dollar prior to now month.

Monday was the primary morning of commerce on the Colombo bourse since a week-long Sri Lankan New Year vacation and a subsequent five-day buying and selling halt after the federal government hiked rates of interest and defaulted on its US$51 billion international debt.

The native S&P index fell 7 per cent within the opening minute of commerce, greater than the 5 per cent wanted to set off an automated half-hour halt.

Shares continued their speedy slide after a quick resumption, prompting the market to declare a halt to buying and selling for the remainder of the day.

Sri Lankan officers have been in Washington final week to barter with the International Monetary Fund for a bailout, however official sources mentioned there was no speedy prospect of emergency funding from the lender.

Colombo is now banking on additional bilateral assist from India, China and Japan to assist maintain the nation afloat, a finance ministry supply instructed AFP.

Sri Lanka’s financial collapse started to be felt after the coronavirus pandemic torpedoed important income from tourism and remittances, leaving the nation unable to finance important imports.

Utilities unable to pay for gas have imposed lengthy each day blackouts to ration energy, whereas lengthy strains snake round service stations every morning as folks queue for petrol and kerosene.

Hospitals are in need of important medicines, the federal government has appealed to residents overseas for donations and report inflation has added to on a regular basis hardships.

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