Shares hit...

Foreign investors net sold equities worth Rs.182.8 million, extending the year-to-date foreign outflows to Rs.1.82 billion. Turnover was Rs.566.5 million, less than this year’s daily average of Rs.932 million.

Top conglomerate John Keells Holdings closed 3.4 percent lower, Lanka Orix Leasing Company fell 4.2 percent, and leading mobile phone services provider Dialog Axiata slipped 1.4 percent.

Investors are waiting for some positive news both on the economic and political fronts, said analysts, adding that the government’s policy implementation had been sluggish since both main parties in the ruling coalition suffered local polls in February.

Finance Minister Mangala Samaraweera said last month that the economy was likely to grow about 4.5 percent this year, below a central bank estimate of 5 percent.

The International Monetary Fund (IMF) said on June 20 that Sri Lanka’s economy remained vulnerable to adverse shocks because of sizable public debt and large refinancing needs.

Ratings agency Moody’s said on Wednesday a strengthening U.S. dollar since mid-april has increased the credit risk of several emerging markets, including Sri Lanka, due to currency depreciation.

Moody’s said a strong U.S. dollar would also lead to a drop in foreign exchange reserves of countries such as Argentina, Ghana, Mongolia, Pakistan, Sri Lanka, Turkey, and Zambia.