Sri Lankan shares fell more than 2% on Tuesday, dragged by financial stocks, after the country's prime minister said the island nation would need $5 billion over the next six months to ensure basic living standards.

* At the close of trade, the CSE All-Share index was down 2.21% at 7,631.13.

* Sri Lanka, an island nation of 22 million people, is currently reeling under its worst economic crisis since independence in 1948.

* To tide over the turmoil, Sri Lanka will need about $3.3 billion for fuel imports, $900 million for food, $250 million for cooking gas and $600 million more for fertiliser this year, Prime Minister Ranil Wickremesinghe told parliament.

* The country's worst economic crisis in seven decades led to a shortage of foreign exchange that stalled imports of essential items such as fuel, medicine and fertiliser, provoking devaluation, street protests and a change of government.

* Sri Lanka was also renegotiating with China the terms of a yuan denominated swap worth $1.5 billion agreed last year.

* Trading volume rose to 95.8 million shares from 73.2 million shares in the previous session.

* The equity market turnover was 1.90 billion Sri Lankan rupees ($5.34 million), data showed

* Foreign investors were net sellers in the equity market, offloading 284.5 million Sri Lankan rupees worth of shares, while domestic investors were net buyers, purchasing 1.73 billion rupees worth of shares, according to exchange data.

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($1 = 356.0000 Sri Lankan rupees)

(Reporting by Tanvi Mehta in Bengaluru; Editing by Amy Caren Daniel)


Reuters