Sri Lanka shares extend gains boosted by financial stocks

Sri Lankan shares settled higher on Monday, extending gains for a second session, supported by gains in financial stocks.

The CSE All-Share index ended up 0.62% at 7,794.21. Last week, it fell 0.8%.

Sri Lankan banks' performance in 2020 and first quarter of 2021 exceeded initial expectations, thanks to stimulus and regulatory relief measures - Fitch Ratings said.

However, risks to the country's banks' performance and operating environment remain, due to pressure stemming from COVID-19 and the sovereign credit profile - Fitch.

Last month, Fitch recalibrated its Sri Lanka National Rating scale.

On Monday, financial stocks LOLC Development Finance and Commercial Leasing & Finance were among the top boosts to the index, rising 21.8% and 8.1%, respectively.

The state minister for pharmaceutical production, Channa Jayasumana said on Sunday the country will receive 26,000 Pfizer vaccines on Monday.

Sri Lanka has reported 265,630 total confirmed coronavirus cases and 3,236 deaths, as of Monday, according to health ministry data.

Last week, the country's president directed health authorities to vaccinate all people above the age of 30 in Western Province, before July 31.

So far, the island nation has fully vaccinated about 5.5% of its population, according to Johns Hopkins data.

On Monday, trading volume on the exchange fell to 43.7 million from 53 million in the previous session.

Foreign investors were net sellers in the equity market, offloading shares worth 610.2 million rupees, exchange data showed.

The equity market's turnover was 1.42 billion rupees, according to exchange data.