Minority government: a source of trouble? (File Photo)
Political uncertainty brings stock to five weeks low
(NIDAHASA News) Parliamentarians from both ruling party and opposition yesterday (03) called for the dissolution of house and immediate election while ongoing political uncertainty causing Colombo Stock Exchange (CSE) to close at their lowest in over five weeks.
Maithirpala Sirisena's victory on January's presidential election ended a decade-long Rajapaksa regime; but the minority government he appointed with his main alley Ranil Wickramasinghe as Prime minister is facing trouble as Rajapksa loyalists still dominate the house.
The main stock index fell 0.64 percent to close at 7,149.46, lowest since April 28. The fall, for the third straight session, was the worst single-day loss since 30th of March.
Political uncertainty is the main reason for this fall, stock brokers say.
"Foreign selling was also seen," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd. "With the expected U.S. interest rate hike foreigners are expected to move funds out to the U.S."
Ruling United National Party (UNP) earlier expressed their support to dissolve the parliament after Sirisena's 100-day program schedule ended in April. But United Peoples Freedom Alliance (UPFA), now led by President Sirisena and holds the majority seats in house maintains that a general election should be called only after proposed election system reformation are done.
Sirisena, in his 100-day program, promised reformations reformation to curb powerful executive presidency and change election system. However he was forced to water down previous constitutional amendment due to the pressure of opposition.