Sri Lanka stocks cheer Gotabhaya Rajapaksa presidencyBusiness | 18 Nov 2019 2:54 pm
The Colombo All-Share Index of Sri Lanka jumped by 1.6 percent after the election of new president Gotabhaya Rajapaksa. It was the biggest gain since July 29 that saw the index reach the highest level since November 2, 2018.
Sri Lanka’s dollar bonds due 2030 are up 0.6 US cent to 101.6 cents on the dollar, ending a 9-day losing streak, according to Bloomberg-compiled prices, which was the sharpest move in the security in almost four weeks.
The rupee also gained the most since November 4 to 179.67 per US dolalr today from 180.20 per dollar on Friday and is at its highest level since August 30. “Gotabhaya’s [Rajpaksa] economic strategy is likely to focus on more populist measures,” as he prepares for parliamentary elections due early next year, said Akhil Bery, South Asia analyst at risk consultancy Eurasia Group. “We’re also likely to see a much friendlier posture toward China, but not as antagonistic to the West as some might believe,” Bery said. “Gotabhaya is pragmatic and likely to recognize that he will need the U.S. support if Sri Lanka’s debt troubles resurface.”
Gotabhaya Rajapaksa, 70, won Sri Lanka’s presidential poll, yesterday with 52.3 percent of the vote.