COLOMBO: Sri Lankan stocks fell for the fourth straight session on Monday to hit a more than two-week low as upward pressure on interest rates kept many investors on the sidelines, while the rupee ended firmer on remittances.
The main index finished 0.53 percent or 30.48 points weaker at 5,705.20, its lowest March 15.
"Interest rates are still high. They need to come off for retailers to get activated," said a stockbroker on condition of anonymity.
Yields on T-bills rose for the fourth straight week at a March 25 auction even though the central bank had kept its key policy rates unchanged for a third month in a row.
However, Central Bank Governor Ajith Nivard Cabraal on Monday told Reuters that market interest rates will ease this year as the monetary authority maintains a loose monetary policy stance.
Turnover was 403.2 million rupees ($3.18 million), less than half of this year's daily average of 1 billion rupees.
Foreign investors were net buyers of 6 million rupees worth of shares extending the year-to-date net foreign inflow to 4.98 billion rupees worth of shares.
The rupee gained to 126.30/35 to the dollar, from Thursday's close of 126.80/85, due to inflows from inward remittances, dealers said.
Both the stock and money markets were closed for a holiday on Friday.
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