COLOMBO Nov 9 Sri Lankan stocks edged up to a
three-week high on Friday, a day after President Mahinda
Rajapaksa announced plans to boost the capital market by
encouraging new listings of shares and debentures through tax
exemptions, brokers said.
Under the budget, presented on Thursday, the government also
aims to reduce the fiscal deficit to 5.8 percent of gross
domestic product (GDP) in 2013, while attaining 7.5 percent
economic growth next year.
The Colombo Stock Exchange's main index rose 0.15
percent, or 8.59 points, to end at 5,589.43, its highest level
"The 2013 budget ... contains several proposals that would
facilitate long-term growth across most of the sectors of the
economy with higher weightage given to capital market
development," SC Securities said in a note to investors.
"The proposals brought forward to develop the debt and
equity market will have considerable positives in the medium to
long term we believe."
Turnover was 986 million Sri Lanka rupees ($7.55 million),
more than this year's daily average of 909.4 million rupees.
Foreigners bought a net 112.4 million rupees worth of shares,
extending the net foreign inflow this year to 35 billion.
The rupee closed flat at 130.75/85 in dull trade,
($1 = 130.6500 rupees)
(Reporting by Ranga Sirilal and Shihar Aneez)