COLOMBO, Feb 13 (Reuters) - Sri Lankan stocks slipped to a
one-week low on Wednesday in thin volume as cautious investors
stood by as the International Monetary Fund said growth was
slowing more than the government had expected.
A visiting IMF mission said Sri Lanka was facing additional
risks from high inflation, lower tax revenue and slow structural
The main share index fell 0.16 percent, or 9.09
points, to end at 5,827.02, its lowest since Feb.7.
The central bank on Tuesday said authorities had decided not
to pursue a new loan from the IMF, which had said it may not be
in a position to consider any direct or indirect budget support
to Sri Lanka.
"The concern is now if the interest rates will go up," a
stockbroker said on condition of anonymity. "Since the expected
IMF money is not going to materialise, Sri Lanka will need to go
for expensive commercial borrowing."
Turnover was 608.44 million rupees ($4.82 million), less
than this year's daily average of 1.17 billion rupees.
Foreign investors were net buyers of 159 million rupees
worth of shares on Wednesday, but they have been net sellers of
1.1 billion rupees so far this year.
The rupee ended weaker at 126.40/60 to the dollar
from Tuesday's close of 126.15/25, dealers said.
($1 = 126.3000 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Ron