Sri Lankan shares closed over 3% higher on Monday after the country's president and prime minister offered their resignations, bowing to pressure from protesters who stormed their residences.

* At the close of trade, the CSE All-Share index was up 3.13% at 7,302.15.

* Thousands of protesters stormed President Gotabaya Rajapaksa's home and office and the prime minister's official residence on Saturday, as demonstrations over their inability to overcome a devastating economic crisis erupted into violence. Leaders of the protest movement said they would occupy the residences until both the men quit.

* The island nation is currently facing its worst economic crisis in seven decades, unable to pay for essential imports such as fuel and medicine due to a severe shortage of foreign exchange.

* Rajapaksa informed Prime Minister Ranil Wickremesinghe that he will resign, the prime minister's office said on Monday. Wickremesinghe has also said he would step down to allow an all-party interim government to take over.

* Sri Lanka's entire cabinet will resign once an agreement is reached to form an all-party government, the prime minister's office said on Monday.

* The turmoil comes as Sri Lanka is pushing for a possible $3 billion extended financing programme from the International Monetary Fund (IMF). The IMF said it was hoping for a resolution that will allow a resumption of talks for a bailout package.

* Sri Lanka central bank governor told Reuters prolonged political instability may delay progress on negotiations with the IMF for a bailout package.

* On the CSE All-Share index, trading volume rose to 52.9 million shares from 22.9 million shares in the previous session.

* The equity market turnover was 811.1 million rupees ($2.27 million), up from 385.9 million rupees in the earlier session, according to exchange data.

* For a report on global markets, click ($1 = 358.0000 Sri Lankan rupees) (Reporting by Rama Venkat in Bengaluru; Editing by Krishna Chandra Eluri)


Reuters