The Securities and Exchange Commission of Sri Lanka (SEC) announced the temporary closure of its stock market on April 16. The Colombo Stock Exchange (CSE) takes the SEC’s direction and will close the stock market for five business days from April 18.

SEC said in the press release that the decision comes from the request on April 15 from the Board of CSE to impose a trading halt, citing the nation’s current situation.

Besides, many other stakeholders of the stock market, including the Colombo Stock Brokers Association, have also sought a temporary market shutdown for the same reasons.

According to SEC, the stock market suspension would give investors time to comprehend the nation’s economic conditions.

SEC said, “The SEC is of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions.”

Sri Lanka has sought immediate financial relief and requested China’s help in guaranteeing 2.5 billion dollars in credit, but has not received a response from Beijing.

The Sri Lankan delegation is headed to Washington to seek funding of up to 4 billion dollars from the International Monetary Fund and other lenders, hoping to get U.S. aid to ease the crisis.

According to Xinhua News Agency, the Sri Lanka stock exchange, CSE, has been negatively impacted by the South Asian country’s economic troubles. The index fell 26% at the end of March compared to the end of 2021.

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