The Colombo stock index rose 0.1 percent to 6,025.20 on Monday. It rose 1.5 percent last week, recording its first weekly gain in four. It gained 1.1 percent in November and has declined 5.5 percent so far this year. The Sri Lankan rupee closed firmer on Monday as banks sold dollars due to month-end inward remittances, but the rupee is still under pressure as investors continue to sell rupee-denominated assets on a credit rating downgrade and a delayed IMF loan discussion in the wake of a political crisis.
Foreigners sold a net 13.5 million rupees ($75,587) worth of stocks on Monday, and they have been net sellers of 8.7 billion rupees since the political crisis started on October 26. The bond market saw outflows of about 34.2 billion rupees between October 25 and November 28, central bank data showed.
The rupee ended at 178.70/90 per dollar on Monday, compared with 178.80/179.20 in the previous session. It has weakened about 3.2 percent since the political crisis began. The currency fell 1.8 percent in November and 16.4 percent so far this year. Five-year government bond yields have risen 55 basis points since the crisis unfolded on October 26.
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