ECONOMYNEXT – Sri Lanka’s All Share Price Index closed 4.74% higher, or 704.88 points, at 15,580.83, following US President Donald Trump’s announcement of a 90-day pause on the proposed 44 percent tariff increase on Sri Lankan exports.
The more liquid S&P SL20 closed up 6.68%, or 290.94 points at 4,643.63.
“Markets have revitalised buying interest,” Ranjan Ranatunga, Assistant Vice President – Research at First Capital told EconomyNext.
“This is mainly due to the reversal on tariffs by Donald Trump.”
The Colombo Stock Exchange is following a global trend, he said.
The CSE showed strong upward momentum in its opening session (up 6.11% as of 9:34am, or 909.07 points up at 15,785.02).
Banks were among the top performing sectors.
“Apparel saw a little revitalised interest. There is some interest in capital goods,” Ranatunga said.
Top contributors to the ASPI by end of session were Commercial Bank (ended 9.39 percent higher at 139.75 rupees), Hatton National Bank (rose 9.54 percent to 301.50 rupees), Sampath Bank (appreciated 8.41 percent to 112.75 rupees), John Keells Holdings (closed 4.69 percent higher at 20.10 rupees).
“Turnover was really good,” Ranatunga said. Turnover was 6.98 billion, well over the monthly average of 2.2 billion.
The market is expected to slow down over the coming days, Ranatunga said.
This is attributed to ongoing caution regarding potential US tariff updates as well as the upcoming holiday period.
Alongside Sri Lanka, the tariffs for most countries have been temporarily amended to 10%.
China remains the only exception, with its tariff now increased to 125%.
Hours before the pause was announced, President Donald Trump wrote, “This is a great time to buy!!! DJT” on the social media platform Truth Social, prompting accusations by US Democratic Party members of market manipulation.
Investors are wary of further tariff changes in the near future, Ranatunga said.
“People are on the lookout on the trade front.”
An All-Party Conference was held on Thursday to discuss the tariffs, chaired by President Anura Dissanayake. The outcome of the Conference has yet to be shared though official channels. (Colombo/Apr10/2025)
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