Colombo stock market bounces back after plunge

The indices at the Colombo Stock Exchange (CSE) rebounded on Tuesday after three continuous days of decline following market turmoil in the wake of US President Donald Trump’s tariffs.

Accordingly, the All Share Price Index (ASPI) rose by 467.26 points (3.19%) to close at 15,127.71 while the S&P SL20 gained 190.29 points (4.46%) to close at 4,455.13 points. 

The day’s turnover was recorded as over Rs. 2.89 billion.

The announcement of new tariffs by US President Donald Trump has not only sent shockwaves across the globe, it also resulted in Colombo Stock Exchange (CSE) losing Rs. 430 billion in three days of trading.

Trump announced on Wednesday (April 2) a 10 per cent baseline tariff on imported goods and harsher “reciprocal” levies on dozens of countries, including key allies such as European Union (EU) members, Japan and Israel. 

Sri Lanka was also at the receiving end of a 44 per cent reciprocal tariff.

President Anura Kumara Dissanayake and the government have taken certain measures to reassure the investors and business owners. Dissanayake appointed a committee to conduct an in-depth study on potential issues that may arise due to the new reciprocal tariff system introduced by US President Donald Trump and to submit recommendations to the government.   

Despite the measures, the CSE has lost ground significantly during trading.

At the end of trading on Wednesday (April 2), the All Share Price Index (ASPI) was at 16,007.44 while it was at 14,660.45 yesterday.

This is a drop of 1,346.99 points or 8.41%.

Yesterday alone, the ASPI dropped by 712.9 points (-4.64%) which is Rs. 227 billion in value.

Accordingly, the CSE has lost Rs. 435.37 billion in value since the announcement of new reciprocal tariffs by Trump.