May 17, 2022 (LBO) – The stock market in Sri Lanka continued its surge for the third consecutive day, with the two major indices finishing up in the range of 5-6% on the trading session. Volumes continued to be relatively light, with less than US$10mn worth of stocks traded on the day.
In the last 3 trading sessions, stocks in Sri Lanka are up well over 10%. The main Colombo Stock Exchange (CSE) All Share Price Index (ASPI) is up roughly 1000 points off the lows ticked before speculation of a new Prime Minister jolted markets.
Today’s rise in the stock market comes on the back of new Prime Minister Ranil Wickremesinghe’s address to the nation on the previous night. In his speech, the PM gave what has been described as a “no bullshit” assessment of the economy.
The situation he painted was grave, as he explained huge losses being incurred on the sale of fuel and electricity to the public. This is in addition to the fact that he articulated that there are no dollars left for imports.
This morning motorists saw long queues for fuel, lengths which many have not seen before. This was despite a request not to line up as there would be no petrol available for the next few days.
Despite the pessimism expressed when the PM articulated that things would get significantly worse before they get better, the PM gave hope that there was light at the end of the tunnel, stating that corrective policy moves as well as aid from our allies will solve the country’s economic crisis.