By M D P DISSANAYAKE

Sri Lanka Stock Market reached rock bottom in this year on 6 May, recording an All Share Index at 5198 with an unfavourable outlook. However, dismissing all forecasts, the Index improved to 5995 on 11 July.

The luck was short-lived.  Since 30 July, it ran into downward territory reaching 5672 on 3 October. Then it rose to 6027 on 1 November.

Then again it dropped to 5934 on 7 November. Now as of today 13 November, it rose to 5992.

The Easter attack had a negative impact resulting these fluctuations.  During this short-lived recovery period, though there were trends of negative impacts, over all, the market is showing a positive trend, except for minor fluctuations due to time-adjustments and market corrections.

Sri Lanka External Debt in 2015 stood around USD 47,000 million, which had now increased to USD 55,000 million in July 2019.  There were no new Mega Projects undertaken during this period to enhance the internally generated funds to  provide employment, education, health and service the debt.  It is questionable as to what happened to the funds generated from the sale of Mattala Airport etc.  Sri Lanka has lost its  major revenue project, but the funds generated had possibly been directed for Consumption than Investment and repayment of debt. 

The signs of improving trends in the local Share Index is a welcoming relief, if maintained by increase utilisation of idle plant and machinery, human resources, which will improve productivity and reduce unit costs.  

Sri Lanka need to look beyond the disgusting everyday non-existing Ethnic Issues.  Political stability was lacking in Sri Lanka since 2015.  This is a great opportunity to direct all resources to achieve economic and social independence.