SL shares drop after 2-day bull-run

Sri Lanka, in the midst of a constitutional crisis after the sacking of the prime minister, saw share prices ease on Wednesday morning after a 2-day bull run with some certain analysts saying that shares ware artificially pushed earlier by interested parties. 

The Sri Lanka Rupee is hitting record lows today at Rs. 175 to a US dollar, they noted saying that Colombo Stock Exchange’s (CSE) rise since Monday to these levels cannot be justified. 
They said foreign investors are now selling more than ever after President Maithripala Sirisena sacked Prime Minister Ranil Wickremesinghe unexpectedly and swore in the former president Mahinda Rajapaksa last Friday creating mayhem in local politics. Mr. Wickremasinghe insists that he is still prime minister, with the support of a majority of members of parliament.

Rating agencies Moody's and Fitch have said the sacking of the prime minister is negative to the country and would impact on foreign invesment.

The All Share Index (ASI) was down by 0.34 cent by 11 am to stand at 5,940.08 points with S&P down by 0.5 per cent to stand at 3,067.85 points on a Rs. 760 million turnover. (DEC)