CSE investors are confused over certain provisions in the recently passed Inland Revenue Act. Therefore, local and foreign investors are awaiting greater clarity on the whole Act, market sources said.
Yesterday the stock market performance was sluggish owing to the confusion in the market due to the uncertainties in the Inland Revenue Act. The day's market turnover stood at Rs. 290.8 million and both indices went down. All Share Price Index went down by 3.62 points and S and P SL20 went down by 1.60 points with one crossing.
According to the president of the Colombo Stock Brokers Association Ravi Abeysuriya the government should enlighten the public, especially the local and foreign investors on the whole Act.The Sri Lankan parliament on Thursday passed tax reforms that could simplify the tax system, widen the tax base and increase government revenue, as agreed with the International Monetary Fund in exchange for a $1.5 billion, three-year loan.
He said that there is no capital gains tax on stock market transactions but it is difficult to comment on companies' positions on the whole.
' The government should enlighten the companies on prospective earnings, which is the need of the hour, Abeysuriya said.
During the day only one crossing took place and that was Ceylon Cold Stores' 46000 shares that crossed to the tune of Rs. 35.65 million with a per share value of Rs. 775.
When it comes to the retail market, the companies that mainly contributed to the day’s turnover were; JKH Rs. 124.05 million (77600 shared traded),Pan Asia Power Rs. 20.14 million (7.52 million shares traded) and Commerical Bank Rs. 9.88 million (72000 shares traded).
During the day 17.73 million shares were traded in 3162 transactions.