The Colombo Stock Exchange extended its closure for five days, citing the nation's worsening economic crisis as the primary reason. The market, originally scheduled to reopen on Monday, will remain closed through Friday following Sri Lanka's declaration of a default on external debt and a sharp interest rate increase.
The decision coincides with preparations for talks with the International Monetary Fund, as the government seeks a bailout to address a critical foreign exchange shortage. Analysts anticipated significant market volatility after the central bank raised its benchmark rate to 14.5% on April 8, the last trading day before the holiday.
Sri Lanka's economic turmoil, the worst since independence in 1948, has led to power cuts, food and fuel shortages, and record inflation. The All Share Index has fallen 38% in three months, while the rupee has lost 35% of its value against the dollar. Protests continue outside President Gotabaya Rajapaksa's residence, with demonstrators chanting "Go home Gota" for the eighth consecutive day.
The government's attempt to secure debt relief from India and China has instead resulted in additional credit lines, exacerbating concerns about the country's financial stability.
