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Political uncertainty causes Sri Lankan shares to hit 15-month low

Sri Lanka’s shares hit a 15-month low today, as political uncertainty ensured that foreign selling continued for a ninth consecutive session.

Reuters reported that there was “continued foreign selling in blue chips, political uncertainty and concerns about lower economic growth dented investor appetite for risky assets” on the island, as shares continued to fall.

Political uncertainty is the main reason that has kept investors on the sidelines,” said Prashan Fernando, CEO of Acuity Stockbrokers.

Tuesday’s showing marks the 16th session in 18 that the Colombo stock index has declined, with Monday marking the biggest fall in intraday trade in nearly 28 months. Foreign outflow has now reached 1.02 billion rupees ($6.44 million).

See more from Reuters here.