Sri Lankan shares fell on Friday after two sessions of gains as uncertainty over a capital gain tax, higher budget deficit and economic growth weighed on investor sentiment.

The benchmark share index was down 0.21 percent, or 12.91 points, at 6,055.26 at 0805 GMT; while previous session’s close of 6068.17 was highest since March 3.

Sri Lanka will raise its value-added tax and reintroduce capital gain tax to break out of a debt trap, ahead of talks on a $1.5-billion loan it is seeking from the International Monetary Fund.

“There isn’t much information on capital gain tax, though the government said it will reintroduce it. There is an uncertainty on the capital tax percentage. Investors are waiting to know more,” said Prashan Fernando, COO, Acuity Stockbrokers.

Investors preferred fixed-interest-rate-bearing assets over shares due to a rise in yields on treasury bills, which are hovering at two-year highs, and on the central bank’s unexpected interest rate hike in mid February, dealers said.

Sri Lanka’s economy is expected to grow 5.3 percent in 2016, data from the state statistics office showed, but analysts say tight monetary and fiscal policies may curb its growth.

The $82.2-billion economy expanded at a sluggish 2.5 percent in the December quarter, down from an upwardly revised 5.6 percent in the previous quarter.

Analysts and economists worry slower growth could reduce corporate earnings of some listed firms.

Turnover stood at 739.9 million rupees ($5.10 million).

“There were dollar sales from two foreign banks, possibly to facilitate foreign bond outflows,” a currency dealer said, asking not to be named.

The rupee traded weaker, currency dealers said. One-week rupee forwards, which act as a proxy for the spot currency, traded at 145.75/85 per dollar, as compared with Thursday’s close of 145.55/65 at 0812 GMT, Reuters reports.