The Colombo Stock Exchange (CSE) staged a strong recovery on Tuesday following three consecutive days of decline, which were triggered by global market instability after the announcement of new US tariffs by President Donald Trump.
The All Share Price Index (ASPI) surged by 467.26 points (3.19%) to close at 15,127.71, while the S&P SL20 Index climbed 190.29 points (4.46%) to finish at 4,455.13. Turnover for the day exceeded Rs. 2.89 billion.
The rebound comes in the wake of a severe downturn that saw the CSE shed Rs. 430 billion in value over three trading days. The market turmoil was sparked by President Trump’s announcement on Wednesday (April 2) of a 10 percent baseline tariff on imported goods, along with harsher “reciprocal” tariffs targeting dozens of countries, including key allies such as the European Union, Japan, and Israel.
Sri Lanka was not spared, facing a reciprocal tariff of 44 percent.
In response, President Anura Kumara Dissanayake and the government took swift steps to stabilize the market and reassure investors. President Dissanayake appointed a special committee to conduct an in-depth assessment of the potential economic impacts of the new tariff regime and to provide policy recommendations.
Despite these efforts, the stock market took a substantial hit. On April 2, the ASPI stood at 16,007.44. By the close of trading yesterday, it had dropped to 14,660.45 — a decline of 1,346.99 points or 8.41%.
In a single day, the ASPI plunged by 712.9 points (4.64%), translating to a market value loss of Rs. 227 billion.
Since the announcement of the US reciprocal tariffs, the Colombo Stock Exchange has lost a total of Rs. 435.37 billion in value.
