COLOMBO, Feb 12 (Reuters) - Sri Lankan stocks slipped from a
two-week high on Tuesday after the central bank said the country
had decided not to pursue a new IMF loan after months of
The main share index fell 0.26 percent, or 15.24
points, to end at 5,836.11.
The central bank said Sri Lankan authorities had decided not
to pursue the 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 central bank kept policy rates unchanged to support
faltering economic growth as it expects inflation to ease from
March onwards, with a subsequent fall in deposit and lending
"Another rate cut would have helped the market and many
local investors are awaiting a lending rate cut," said Reshan
Kurukulasuriya, Chief Operating Officer at Richard Pieris
Turnover was 705.26 million rupees ($5.58 million), less
than this year's daily average of 1.19 billion rupees.
Foreign investors were net buyers of 38.23 million rupees
worth of shares on Tuesday, but they have been net sellers of
1.26 billion rupees so far this year.
The rupee ended firmer at 126.15/25 to the dollar
from Monday's close of 126.33/38 on exporter dollar sales,
($1 = 126.4000 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Nick