Industrials, consumer staples drag Sri Lanka shares; February inflation drops

Sri Lankan shares closed lower on Thursday, dragged by industrials and consumer staples stocks.

The CSE All-Share index settled 0.57% lower at 11,176.54.

Sri Lanka’s consumer price inflation rate dropped to 5.1% in February after accelerating to 6.5% in January, official data showed on Thursday, as the impact of a higher sales tax needed to meet targets set under a $2.9 billion IMF programme receded.

Additionally, the International Monetary Fund and Sri Lanka reached a staff-level agreement on economic policies to conclude the second review of a four-year bailout programme, the global lender said on Thursday.

C T Holdings Plc and LOLC Finance Plc were the top losers on the index, down 8.5% and 1.8%, respectively.

Sri Lanka shares end lower as industrials, consumer staples drag

Trading volume on the index fell to 33.20 million shares from 44.90 million shares in the previous session.

The equity market’s turnover fell to 639.90 million Sri Lankan rupees ($2.11 million) from 910.10 million rupees in the previous session, according to exchange data.

Foreign investors were net buyers, purchasing stocks worth 30.90 million rupees, while domestic investors were net sellers, offloading shares worth 622.70 million rupees, the data showed.