Sri Lanka stocks close down 2-pct at near two year low

Mar 04, 2016 (LBO) – Sri Lankan stocks closed down 2.02 percent with losses across the board following an announcement from the government to re-introduce Capital Gains Tax which has not been implemented in Sri Lanka from 1987, brokers said.

The Colombo benchmark All Share Price Index (ASPI) closed 112.50 points at 5,934.72, down 2.02 percent. The S&P SL20 closed 59.65 points at 3,144.85 down 1.86 percent.

Turnover was 900 million rupees, up from Fridays 334 million rupees with 9 stocks closing positive against 177 negative.

“The ASPI crossed the physiological 6,000 barrier and hit a near two year low,” SC Securities said.

The main index showed losses in John Keells Holdings with the stock closing at 150.80 rupees, down 3.20 and Nestle Lanka closed at 2,000.00  rupees, down 50.00 rupees.

Hemas Holdings closed at 75.90 rupees, down 3.00 rupees.

There was a net foreign inflow of 245 million rupees.

Prime Minister Ranil Wickremesinghe told Parliament this afternoon that the government had decided to amend certain budget proposals applicable for this year.

As per new amendments Statutory Income Tax has been increased from proposed 15 percent to 17.5 percent while also a Capital Gains Tax which has not been implemented in Sri Lanka from 1987 was introduced.

Tax concessions on telecommunications, private education and private health have also been removed.