Sri Lanka stock market halts trading after 12.6 per cent fall amidst economic crisis

The situation in Sri Lanka is getting worse by the day and the impact can clearly be seen on the country’s share market. Trading was halted for the second time this month on Monday after the Sri Lanka share market saw a massive fall of around 12.6 per cent amidst the ongoing economic crisis.

The market was closed for around two weeks due to the Sri Lankan New Year holidays and the five-day break after trading was halted on the first occasion. On that occasion, the trading was stopped due to the rising interest rates as the country’s government defaulted on its $51 billion foreign debt.

According to an AFP report, Sri Lanka is currently facing its worst economic condition since gaining independence in 1948 and the local currency and equities have lost around 40 per cent of value.

Blackouts and food shortages have become common in the country which is experiencing acute problems when it comes to its economy and that has resulted in massive wide-spread protests.

The AFP report further said that the local S&P index fell around seven per cent since the start of trading and it kept going down until it triggered an automatic half-hour halt to the trading.

A finance ministry source in Colombo told AFP that Sri Lanka re currently in talks with neighbours India, China and Japan in order to acquire some financial help. The source also emphasised on the fact that foreign aid seems to be the most likely solution to the current economic crisis.

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(With inputs from agencies)