First Capital’s Senior Research Analyst, Atchuthan Srirangan speaks to Reuters Wed Sep 14, 2016
“Investors are worried about the VAT hike. Profit-taking was also there.”
COLOMBO, Sept 14 (Reuters) – Sri Lankan shares closed marginally lower on Wednesday, posting their lowest closing level in nearly six weeks, as a government proposal to raise the value added tax (VAT) hurt market sentiment.
The government on Wednesday said the cabinet has approved a proposal to increase the VAT to 15 percent from 11 percent with some amendments, a move halted by the Supreme Court earlier. The hike is expected to be implemented after parliamentary approval later this month.