(Reuters) – Sri Lankan shares ended higher on Wednesday, helped by gains in beverage and banking shares, while the rupee ended firmer on hopes of tax cuts by the new government. ** After the market closed, Cabinet Spokesman Bandula Gunawardana said the government has decided to reduce value-added tax to 8% from 15% with effect from Dec. 1. ** Sri Lanka’s central bank is likely to leave its key interest rates on hold at a policy review on Friday, a Reuters poll indicated, while it waits for the new government’s economic policies after the election of a president on Nov. 16. ** The benchmark stock index ended up 0.39% at 6,118.87, further moving away from its lowest close since Nov. 15 hit on Monday. The bourse gained 1.6% last week, and is up 1.10% for the year. ** Analysts said investors are awaiting for some policy directions from the country’s newly elected president, Gotabaya Rajapaksa. ** The rupee ended 0.39% firmer at 180.80/181.10 per dollar, compared to Tuesday’s close of 181.50/90, Refinitiv data showed. It is up 0.6% so far this year. ** Foreign investors were net sellers for 22 sessions in 24. ** They sold a net 176.7 million Sri Lankan rupees ($981,667) worth of shares on Wednesday, extending the net selling so far this year to 9.45 billion rupees worth of equities, according to index data. ** Equity market turnover was 1.3 billion rupees, more than this year’s daily average of about 711.6 million rupees. Last year’s daily average was 834 million rupees. ** Meanwhile, foreign investors were net buyers of government securities on a net basis for the fifth straight week, purchasing a net 0.21 million rupees worth of government securities in the week ended Nov. 20. ** Total foreign outflows from government securities through Nov. 20 stood at 48 billion rupees, central bank data said.
The post Sri Lankan shares, rupee gain ahead of tax cuts appeared first on Adaderana Biz English | Sri Lanka Business News.
adaderana business