Stock market reacts to yes and no relating to IMF bailout

Some confusion has arisen among market analysts and private sector policy makers when it comes to who is qualified enough to answer the most pertinent question thrown around political circles these days: “Whether Sri Lanka should seek IMF assistance, or not?”

A day after Finance Minister Basil Rajapaksa addressed the media that the country wrote to the IMF seeking assistance,

Central Bank Governor Ajith Nivard Cabraal clarified quickly to say that the letter was with regard to ongoing IMF capacity building initiatives, and not re l at e d to debt management.

This reflected in the market too. The Colombo stock market responded positively towards the Minister’s announcement, but later went down after the clarification came from CBSL Governor.