Stock Market

Sri Lanka Stock Market Plunges 4.64% Amid US Tariff Jitters

Trading Halted Briefly as S&P SL20 Index Triggers Circuit Breaker


Colombo, Apr 7, 2025 — Sri Lanka’s stock market experienced a sharp downturn on Monday, with investor sentiment rattled by the recent “Liberation Day” tariff announcement by the United States. The Colombo Stock Exchange (CSE) responded with a temporary trading halt after the benchmark indices plummeted in early trade.

The All Share Price Index (ASPI) closed the day down 4.64%, shedding 712.90 points to settle at 14,660.45. Meanwhile, the S&P SL20 Index, which tracks the performance of the top 20 largest and most liquid stocks, fell a staggering 5.92%, or 268.51 points, ending at 4,264.84.


Market Halts After Sharp Drop in Morning Trade

Trading was temporarily suspended shortly after markets opened when the S&P SL20 Index dropped by 5.30%, triggering a circuit breaker. The CSE paused all trading activity from 9:51 AM to 10:07 AM, followed by a 14-minute auction session before regular trading resumed at 10:21 AM.

The day’s turnover reached Rs. 6.4 billion, reflecting heightened market activity amid the sell-off.


Banking and Conglomerates Lead the Decline

Several high-profile stocks bore the brunt of the market rout:

  • Commercial Bank dropped 8.58% to close at Rs. 122.50
  • Hatton National Bank (HNB) slid 7.96% to Rs. 269.00
  • Sampath Bank fell 5.90% to Rs. 102.75
  • Melstacorp declined 5.70% to Rs. 120.25
  • John Keells Holdings (JKH) dropped 4.60%, ending the day at Rs. 18.70

Analysts note that the US tariff announcement may have triggered concerns over trade disruptions and foreign investment volatility, contributing to Monday’s sharp decline.