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| Sri Lanka's economic crisis has sparked a wave of anti-government protests. (Photo by= AFP/Jewel Samad) |
[Asia News = Reporter Reakkana] COLOMBO: The Colombo Stock Exchange on Saturday (Apr 16) announced a five-day trading halt after crisis-hit Sri Lanka hiked interest rates and declared a default on its external debt during the traditional New Year holiday, AFP reported.
The market was due to reopen on Monday after being shut all week for the occasion, but the CSE said it will remain closed from Monday to Friday due to the "present situation in the country". The move came ahead of Sri Lanka's planned talks with the International Monetary Fund in Washington on Monday to negotiate a bailout as the country has run out of foreign exchange to finance even the most essential imports. Brokers had been expecting shares to be hammered on Monday, after the central bank almost doubled its benchmark interest rate to 14.5 percent following the close on Apr 8, the last trading day before the holiday.
Faced with an unprecedented forex crisis, the government on Tuesday declared it was suspending interest and capital payments on its huge foreign debt. The island nation is grappling with its worst economic downturn since independence in 1948, with regular blackouts and acute shortages of food and fuel in addition to record inflation. The crisis has caused widespread misery for Sri Lanka's 22 million people and led to weeks of anti-government protests.
