Sri Lanka’s shares slipped at close on Monday with selling pressure continuing in banking sector counters, as the market anticipates local debt restructuring following International Monetary Fund loan approval, an analyst said.
The main All Share Price Index (ASPI) was down 0.10 percent, or 9.38 points, to 9,405.90.
“There is pressure in the banking counters as fears of domestic debt restructuring have surfaced in the market after the approval of the International Monetary Fund,” the analyst said.
“Banks are decreasing in value due to risks associated with domestic debt restructuring, debt optimization, and negotiations on external debt restructuring.”
Sri Lanka’s Governor Nandalal Weerasinghe said the country would not restructure Treasury bills outside of central bank holdings and would engage with major T-bond holders for voluntary “optimization.”
Some domestic debt restructuring discussions have been scheduled for April 20, and investors are likely to wait for further clarity before investing.
The most liquid index, S&P SL20, was up 0.50 percent, or 13.65 points, to 2,762.88. The market generated revenue of 1.2 billion rupees.
Top gainers for the day were Expolanka, Aitken Spence, and Hayleys.
Expolanka has been a top gainer due to anticipations and expectations that SJ Holdings may resurface and buy Expolanka.
As the holiday season comes to an end and high profits in the tourism stocks paid out the negative impact of potential domestic debt restructuring, an analyst said.