Following drop in bank interest rates, inflation:

Peace spurs Colombo Stock Market
 

Prime Minister Ratnasiri Wickramanayaka who paid a surprise visit to the Colombo Stock Exchange at the World Trade Centre yesterday in conversation with Securities and Exchange Commission Chairman Udaya Sri Kariyawasam .

The Colombo Stock market became the best performing stock market yesterday as a result of the peaceful conditions prevailing in Sri Lanka, the drop in bank interest rates and rapid drop in inflation. This is due to the proper management and growth of Sri Lanka’s economy, said Prime Minister Ratnasiri Wickramanayaka.

Market capitalization recorded a maximum of Rs. 1,000 billion yesterday for the first time in history. The increase of capitalization in any stock market of a country is a sign that development in the country is favourable.

The Premier was speaking after a sudden visit to the Colombo Stock Exchange at the World Trade Centre yesterday. He conveyed his good wishes to the staff for recording the highest capitalization at the CSE.

He said that the CSE has strengthened Sri Lanka’s economy after 30 years and thanked Securities and Exchange Commission Chairman Udaya Sri Kariyawasam and his staff for their commitment for the success achieved at the CSE.

Reuters said that the CSE is the best performing stock market in the world for the year to date, a CSE official said. According to First Guardian Equities, the decisive end of the protracted conflict with the LTTE in May 2009 has contributed towards improvements of the country’s macroeconomic picture, lead to an increase in tourist arrivals and foreign fund inflows.

This has helped sentiment in the market to remain optimistic despite the economic turmoil in the rest of the world, especially in the US and Europe which are the country’s largest export markets.

HP