Sri Lanka shares end higher after central bank eases policy with new single benchmark rate

Sri Lankan shares closed higher for a second straight session on Wednesday after the country’s central bank set a new single policy rate of 8%, easing monetary settings below previously used benchmarks.

The CSE All Share index settled 0.7% higher at 13,049.83.

The island nation’s economy is expected to expand by 4.5% to 5% in 2024, its first increase in three years, an official at the central bank said after the release of its monetary policy decision.

Nation Lanka Finance PLC and SMB Finance PLC were the top gainers by percentage on the CSE All Share, rising 50% each.

Sri Lanka shares end higher as energy, industrials gain

Trading volume on the CSE All Share index rose to 97.7 million shares from 40.8 million shares in the previous session.

The equity market’s turnover rose to 3.64 billion Sri Lankan rupees ($12.5 million) from 1.14 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 255.9 million rupees, while domestic investors were net buyers, purchasing shares worth 3.50 billion rupees, the data showed.