Cyclone-ravaged Sri Lanka’s shares log worst week in over three years

Sri Lankan stocks posted their worst week in over three years on Friday, as investors counted losses and feared about potential economic hit from Cyclone Ditwah, even as efforts to normalise life in the island country gained pace.

The CSE All-Share index fell 1.5% on Friday, taking weekly losses to 5.35%.

It was the benchmark’s worst week since mid-November 2022. That year Sri Lanka’s economy plunged into a severe financial crisis due to record shortage of dollars.

Relief efforts were underway in Sri Lanka this week, after Cyclone Ditwah struck the country last Friday, triggering floods and landslides, which killed about 500 people and impacted nearly 10% of the country’s population.

Analysts said near-term monthly inflation readings will be closely watched to gauge the floods’ economic impact.

On the day, industrials fell 3%, leading percentage declines among sub-sectors. Colombo Dockyard slumped 70% and was the top percentage loser on the CSE All-Share.

Trading volume on the CSE All-Share index fell to 132.1 million shares from 171.3 million in the previous session.

The equity market’s turnover rose to 3.97 billion Sri Lankan rupees ($12.9 million) from 3.78 billion rupees in the previous session, according to exchange data.

Foreign investors turned net buyers on Friday after three consecutive sessions of net selling. They net purchased stocks worth 154.5 million rupees. Domestic investors net sold shares worth 3.89 billion rupees, the data showed.