COLOMBO, March 16 Sri Lankan shares hit a
one-year closing low on Thursday, falling for an eighth straight
session, as concerns the central bank would raise rates next
week weighed on sentiment after the International Monetary Fund
urged it to tighten monetary policy.
The Colombo stock index closed 0.06 percent lower at
6,028.57, its lowest close since March 16, 2016.
The index has lost 1.45 percent over the last eight sessions
since the IMF urged Sri Lanka's central bank last week to be
ready to tighten monetary policy if credit growth or inflation
does not abate.
The central bank's second monetary policy review of the year
is due on March 24.
"It is a very dull day. Investors are on the sidelines
because of the uncertainty and waiting to see the monetary
policy decision next week," said Atchuthan Srirangan, a senior
research analyst with First Capital Equities (Pvt) Ltd.
Turnover stood at 272.1 million rupees ($1.79 million),
about a third of this year's daily average of 667 million
The bourse slipped further into oversold territory on
Thursday, with the 14-day relative strength index at 28.159
points versus Wednesday's 28.701, Thomson Reuters data showed. A
level between 30 and 70 indicates the market is neutral.
Shares of Sri Lanka Telecom Plc closed down 2.65
percent. Teejay Lanka Plc fell 1.67 percent.
Foreign investors net bought shares worth 103.2 million
rupees in the 12th straight session of net-buying, raising the
year-to-date net foreign inflow to 2.46 billion rupees into
($1 = 151.7500 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju