Reply To:
Name - Reply Comment
Last Updated : 2024-04-27 00:40:00
REUTERS: Sri Lankan shares fell yesterday after two sessions of gains as uncertainty over a capital gains tax, higher budget deficit and economic growth weighed on investors’ sentiment. The benchmark share index was down 0.17 percent, or 10.38 points, at 6,057.79, edging down from its highest close since March 3 hit on Thursday.
Sri Lanka will raise its valueadded tax and reintroduce capital gains tax to break out of a debt trap, ahead of talks on a $1.5-billion loan it is seeking from the International Monetary Fund. “There isn’t much information on capital gains tax, though the government said it will reintroduce it. There is an uncertainty on the capital tax percentage.
Investors are waiting to know more,” said Prashan Fernando, COO, Acuity Stockbrokers. Investors preferred fixedinterest- rate-bearing assets over shares due to a rise in yields on treasury bills, which are hovering at two-year highs, and on the Central Bank’s unexpected interest rate hike in mid February, dealers said
Sri Lanka’s economy is expected to grow 5.3 percent in 2016, data from the state statistics office showed, but analysts say tight monetary and fiscal policies may curb its growth. The $82.2-billion economy expanded at a sluggish 2.5 percent in the December quarter, down from an upwardly revised 5.6 percent in the previous quarter. Analysts and economists worry slower growth could reduce corporate earnings of some listed firms. Turnover stood at Rs.919.5 million ($6.3 million), more than this year’s daily average of Rs. 794.1 million. Shares in Sri Lanka Telecom Plc fell 2.69 percent.
Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Reply To:
Name - Reply Comment
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
Is the situation in Sri Lanka so grim that locals harbour hope that they coul
26 Apr 2024
26 Apr 2024