Sri Lanka shares slip from two-month high on selloff, foreign outflows

May 6 (Reuters) - Sri Lankan shares slipped on Wednesday from their two-month highs hit in the previous session as investors sold select illiquid shares and foreign investors exited from risky assets, while turnover hit a six-week high on local buying.

The main stock index fell 0.14 percent to close at 7,192.29, slipping from its highest closing level since March 4 hit on Tuesday. It gained 4.36 percent through Tuesday since the central bank cut key rates on April 15, while yields on t-bills have fallen 44-57 basis points since then.

"Market is down on large-cap illiquid shares, but we saw local participation is getting stronger. The confidence is slowly picking up with interest rates coming down," said a stockbroker asking not to be named.

Net foreign outflow from equities on Wednesday was 516.7 million rupees ($3.9 million), extending net outflows of 610.4 million rupees for the past three days. Foreign investors, however, have bought a net 3.2 billion rupees worth of shares so far this year.

Turnover stood at 1.68 billion rupees, the highest since March 25 and well above this year's daily average of around 1.07 billion rupees.

Analysts said the market could be dull until the perception of political uncertainty is addressed and many investors would be in wait-and-watch mode before the parliamentary elections.

Sri Lanka's parliament passed reforms last week to reduce some of the president's powers, although they were far fewer than President Maithripala Sirisena had promised.

Shares of Commercial Leasing and Finance Plc fell 6.67 percent, while Chevron Lubricants Lanka Plc fell 2.01 percent. Large-cap Ceylon Tobacco Co Plc fell 0.50 percent. 

($1 = 133.3000 Sri Lankan rupees) 

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Prateek Chatterjee)

Central Bank opens its Regional Office in Kilinochchi

The Central Bank of Sri Lanka will commence operations of its newly constructed Regional Office in Ariviyal Nagar, Kilinochchi on 6th May, 2015. 

The Kilinochchi Regional Office is to be declared open by Minister of Resettlement, Reconstruction and Hindu Affairs Hon. D M Swaminathan and Deputy Minister of Policy Planning, Economic Affairs, Child, Youth & Cultural Affairs Hon. Dr. Harsha De Silva, on the invitation of the Governor of the Central Bank of Sri Lanka and the Monetary Board. 

Cabinet Ministers, Deputy Ministers and parliamentarians representing the Northern Province, Governor of the Northern Province, Provincial Ministers and members of Northern Provincial Council, the senior management of the Central Bank, senior officials of banks and other institutions will participate at this event.

Sri Lanka shares close at two-month high on hopes of better earnings

May 5 (Reuters) - Sri Lankan shares rose to a more than two-month high on Tuesday due to local buying in large-caps, while foreign investors exited from risky assets.

The main stock index rose 0.32 percent to 7,202.11, its highest closing level since March 4. It has gained 4.36 percent since the central bank cut key rates on April 15, while yields on t-bills have fallen 40-50 basis points since then.

"Confidence is slowly coming into the market after the passing of the 19th Amendment and expected good earnings," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

Sri Lanka's parliament passed reforms last week to reduce some of the president's powers, although they were far fewer than President Maithripala Sirisena had promised.

The passage of constitutional reforms that would help establish independent bodies for good governance also buoyed the market, analysts said. Concerns, however, remain over political stability.

The market saw a net foreign outflow of 28.6 million rupees ($214,876) from equities on Tuesday. Foreign investors have bought a net 3.72 billion rupees worth of shares so far this year.

Turnover stood at 1.11 billion rupees, the highest since April 16 and more than this year's daily average of around 1.06 billion rupees.

Analysts said the market could be dull until the perception of political uncertainty is addressed and many investors would be in a wait-and-watch mode before the parliamentary elections.

Shares of Distillers Co of Sri Lanka Plc rose 2.1 percent, while Ceylon Tobacco Co Plc gained 0.7 percent.

($1 = 133.1000 Sri Lankan rupees) 

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Prateek Chatterjee)