• ASPI down 1.42% in 3 days
• CSE extends losses in first 3 sessions of the week
• Market capitalisation drops by Rs. 101.49 b to Rs. 7.43 t  

The Colombo Stock Exchange (CSE) extended its losses in the first three sessions of the week, shrugging off Sri Lanka’s Staff-Level Agreement with the International Monetary Fund (IMF) on the Seventh Review of its bailout programme.

The All Share Price Index (ASPI) fell 295.09 points, or 1.42%, from its 2 October close of 20,812.64 to 20,517.55 on Wednesday (7). The S&P Sri Lanka 20 shed 67.10 points, or 1.14%, to 5,816.40.

The ASPI is now down 9.31% for the year and just 253.54 points above its year-to-date low of 20,264.01.

Market capitalisation dropped by Rs. 101.49 billion to Rs. 7.43 trillion over the three days.

The index fell 0.81% on Monday (5), edged up 0.03% on Tuesday (6), and dropped 0.64% on Wednesday.

Equity turnover totalled Rs. 6.20 billion, led by Rs. 3.16 billion on Monday before falling to Rs. 1.07 billion on Tuesday and Rs. 1.97 billion on Wednesday.

Foreign investors were net sellers in all three sessions, with net outflows of Rs. 164.87 million. Foreign purchases amounted to Rs. 127.11 million against sales of Rs. 291.98 million.

The slide came despite the IMF reaching a Staff-Level Agreement on the Seventh Review of Sri Lanka’s Extended Fund Facility. 

The deal would give Sri Lanka access to SDR 254 million (about $ 345 million) if the Executive Board approves the review, bringing total IMF disbursements under the programme to about $ 2.7 billion. 

Board approval is contingent on the 2027 Budget being presented in line with programme parameters and the completion of a financing assurances review.

The IMF also urged the Government to allow domestic fuel prices to adjust in line with international prices in response to the protracted Middle East war.

Inflation, meanwhile, held at a more-than-three-year high of 8% in September, breaching the Central Bank of Sri Lanka’s upper target.

– By Priyanwada Abeyrathna