Sri Lankan shares fall to near one-month low

Reuters: Sri Lanka's benchmark index ended lower in lean trading on Wednesday, dragged by blue chips to a near one-month closing low, as investors largely stayed on the sidelines, stockbrokers said.

The benchmark Colombo stock index ended 0.25 percent lower at 6,507.98, its lowest since Aug. 8. The bourse had fallen 0.2 percent last week, posting its second straight weekly loss.

Foreign investors, who have sold shares worth net 2.74 billion rupees ($18.86 million) so far this year, were net buyers of shares worth 32.9 million rupees on Wednesday.

Turnover stood at 500.4 million rupees, around two-third of this year's daily average of 752.4 million rupees.

"It was a dull day. Today, it was mainly the retail activity and we didn't see aggressive buying or selling in the market even though there were opportunities in the market," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.

"Market is stagnant and investors are awaiting some direction."

After the market close, the central bank's weekly treasury bill auction results showed rates fell 23 to 34 basis points. The benchmark 91-day treasury bill rates fell for the first time since July 8.

Dealers said the reduction in rates will help attract investors into stocks.

The fall was led by shares of Sri Lanka Telecom Plc and Distillers Sri Lanka Plc, which fell as much as 1.9 percent and 2.5 percent, respectively. 

($1 = 145.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez)

Chinese tourists outnumber Indians for second consecutive month

Tourist arrivals in August rose by 12% to 186,288, bringing the first eight months’ tally to 1.36 million, up 16% from a year earlier.

August arrivals were however lower than the record monthly high of 209,351 achieved in July.

Nevertheless, tourist arrivals have enjoyed increases for 88 consecutive months in Sri Lanka.

Chinese tourists continue to dominate arrivals for the second consecutive month, relegating Indians to second place. Arrivals from China in August amounted to 27,519, up by 11%, bringing the year-to-date total to 190,992, up 32%.

Indian arrivals rose by 3.7% to 24,418 in August while India topped year-to-date figures with 224,924 arrivals, up by 16%. In July Chinese arrivals peaked to a high of 30,631, up 22% from a year earlier. Indians amounted to only 27,665. The previous occasion when Chinese tourists dominated Indians was in February, with the former producing 32,186 arrivals against 26,559 from India.

The traditional UK market saw a healthy growth of 14% to 20,475 arrivals in August, pushing its cumulative figure to 131,124, up 18%. Germany and France too recorded double-digit growth. Western Europe remained the largest regional source with 65,000 arrivals in June, up 16% and 445,667 up to August, a growth of 18%.

Total arrivals hit a record high of 1.8 million in 2015, while revenue from the island nation’s leisure sector also peaked at $ 2.86 billion last year.

Tourism Minister John Amaratunga has said the country’s tourism industry was targeting 2.5 million visitors this year and revenue of $ 3.5 billion.
www.ft.lk