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Economic turmoil: Sri Lankan shares suffer worst day in 16 years

Sri Lankan shares have had their worst day in 16 years, as a new outbreak of coronavirus infections in the Island weighed on the markets and triggered a trading halt for thirty minutes.

The benchmark CSE All Share Index ended down 7.65% at 5,587.18. The worst intraday percentage lost since 6 April 2004.

Trading on the Colombo Stock Exchange was halted earlier on the 5 October for thirty minutes after the S&P Sri Lanka 20 Index fell over 7.5% from its previous close.

The latest outbreak of coronavirus infections at a garment factory in the Gampaha dented the markets. Following the outbreak, the police have declared curfew in a number of areas

The country has suffered extreme economic hardships in recent months as international debt increases. The cancellation of key infrastructure projects such as the Japanese funded Light Railway Track System comes as Sri Lanka’s Gross Debt exceeds $50 billion, and the recent Moody Credit ratings for Sri Lanka saw a downgrade due to substantial decline in revenue and economic slowdown.

Read more from Reuters.

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