Colombo shares down amidst Parliament jitters

Sri Lanka’s stock market was down on Wednesday morning when the country’s political crisis took a new turn with Parliament passing a no confidence motion against Prime Minister Mahinda Rajapaksa.

High turnover was generated by 844,000 share of Access stock being trade by 10.30 am. Amidst an element of chaos where a no confidence motion against the PM was passed in the legislature with ruling party (SLFP/SLPP) members voicing their protest, Mr. Rajapaksa walked out of the chamber. 

Parliamentary sittings were then suspended till tomorrow, with analysts saying the President may have to call on former Prime Minister Ranil Wickremesinghe to form a government. 

However that would depend on whether the ruling party headed by President Maithripala Sirisena and Mr Rajapaksa, accept the events in parliament or is planning another strategy to stay in power.

A three judge bench of Sri Lanka's Supreme Court (SC) gave an interim order on Tuesday suspending the gazette issued by the President dissolving the Parliament.

The main All Share Price Index was down by 0.58 per cent to stand at 5,958.91 points by 10.30 am with liquid S&P down by 0.74 per cent to stand at 3,105.61 points on a Rs. 512 million turnover and 4 million share volume. ODEL, a subsidiary of Softlogic Holdings Ltd (SHL), saw 92 per cent of the company amounting to 249 million shares trade on Tuesday on a turnover of Rs. 6.2 billion at the Colombo Stock Exchange (CSE).  (DEC)