SAFE HAVEN RUSH PUSHES GOLD TO

Sri Lankan market operates on recycled gold, but the market price reflects the trend of the international market price | Hedge funds, even central banks who are traditionally holding dollar reserves, are converting part of their portfolio into gold | Industry says hike nothing to do with local demand.

- NISHEL FERNANDO

Gold prices in Sri Lanka surged to an all-time high on Friday, shattering previous records as investors worldwide flock to the precious metal amid growing economic uncertainty.

Local experts attributed the sharp increase entirely to international market pressures, dismissing local demand as a factor.

Lalitha Jewellers Colombo Executive Managing Director Sellakumar Kandasamy confirmed the new highs at the close of business on Friday.

"Yesterday the 24-carat price was close to Rs. 417,000," Kandasamy stated. He noted that the 22-carat price settled around "Rs. 385,000 to Rs. 386,000." Earlier in the day, the All-Island Gold Jewellers' Association reported that the 24-carat sovereign had breached the Rs. 400,000 mark for the first time, pricing it at Rs. 410,000 in the morning-a staggering Rs. 15,000 increase from the previous day.