Colombo share prices fall on West Asian tensions

Colombo share prices eased on Wednesday, recording its lowest in the recent months, in the backdrop of rising tensions in West Asia, brokers said.

The All Share Price Index fell by 2.11 per cent to 5,898.84 points while the S&P SL 20 stocks index fell by 2.64 per cent to 2,782.45 points. The day’s turnover was Rs. 624 million.

On Tuesday, Iran fired missiles at US bases in Iraq in retaliation for the killing earlier of a powerful Iranian military commander in a US drone attack. SriLankan Airlines was among several international airlines that said they would avoid overflying Iranian and Iraqi airspace.

Tea prices at this week’s auction on Tuesday/Wednesday were also said to be subdued on fears that the Iran-US squabble would precipitate to a full scale war. Iran is a key buyer of Ceylon Tea in addition to being a supplier of oil. 

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