COLOMBO: Stocks in Sri Lanka plunged, triggering a trading halt for the rest of the day, shortly after the market opened for the first time in two weeks.

       Sri Lanka’s blue-chip index sank 12.6%, exceeding the 10% drop that would result in an all-day suspension. Benchmark Colombo All-Share Index fell as much as 6.7% as investors worry about the nation’s economic crisis.

       While trading in Sri Lanka was halted for the previous two weeks – the first week due to a holiday and the second by the securities regulator – the central bank hiked policy rates by a record, the government halted payments on foreign debt, while rating companies slashed the nation’s credit rating.

       Civil protests against the government over soaring food prices and fuel shortages intensified. Prior to yesterday’s fall, the Sri Lanka Colombo Stock Exchange All Share Index had erased almost a third of its value this year, after a world-beating rally of 80% in 2021.

       Sentiment still remains jittery as the government seeks up to US$4bil (RM17.4bil) this year from international lenders to help ease shortages of food, fuel and medicines as its foreign reserves dry up.

       The Securities & Exchange Commission of Sri Lanka on April 16 abruptly ordered the stock exchange to be halted for a week, citing the need to give investors time to digest the country’s economic conditions.

       The order came after the exchange had been already been shut for a week for the traditional new year holidays, drawing sharp criticism from the financial industry.

       “Closures of this nature can dilute the confidence on the Colombo Stock Exchange, especially from foreign investors who might find this to be unpredictable,” said Naveed Majeed, senior vice-president for research at Asia Securities Ltd in Colombo. — Bloomberg