MTD Walkers dragging CSE down

Colombo (News 1st): It is observed that the depreciating rupee, in terms of the exchange rate, had settled around the Rs 178 mark but the Stock Exchange continued its somewhat negative performance. Reuters says that the local currency posted a weekly loss of 0.42% for the week due to high dollar demand from importers and outflows from the stock market. The Island newspaper reported that the combination of TFC and the events following MTD Walkers was responsible for the lackluster performance of capital markets in Sri Lanka. This information was followed by the further downward spiral that appears to have engulfed MTD Walkers. Earlier in the week, News 1st exposés brought to the notice of the authorities and to the public alike, the significant risks being faced by a state bank mainly the People's Bank, in connection with the lending portfolio of MTD Walkers PLC. Four local banks engaged with MTD Walkers sought temporary injunctions against this company preventing a transfer of shares to third parties. A day later that information was followed with the actions of a leading listed group seeking a winding-up petition against a subsidiary company of MTD Walkers PLC.

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