Trading at the Colombo Stock Exchange (CSE) was temporarily halted on Monday after a key index dropped more than 5.30%, triggering an automatic circuit breaker mechanism.
The CSE issued a statement saying, “Please note that the market has been halted due to the S&P SL20 index dropping over 5% from the previous close, as set out in SEC Directive dated 30th April 2020.”
As a result, the market was paused for 16 minutes—from 9:51 a.m. to 10:07 a.m.—to allow for a cooling-off period. A 14-minute Auction Session followed from 10:07 a.m. to 10:21 a.m., after which regular trading resumed at 10:21 a.m.
The S&P SL20 index, which tracks the 20 most liquid and largest listed companies, opened sharply lower, falling by 240.45 points to 4,292.90. The All Share Price Index (ASPI) also saw a significant decline, dropping 639.01 points or 4.16% to settle at 14,734.34.
Market sentiment has been fragile since last week, when Sri Lankan export-oriented stocks plunged after U.S. President Donald Trump announced a 44% tariff on exports from the island. Brokers say the broader market has been reeling ever since.
“Investors are in a panic after the U.S. tariff imposition,” said Ranjan Ranatunga, Assistant Vice President – Research at First Capital
