The Colombo Stock Exchange in Sri Lanka experienced a significant decline on Monday, falling by 797.77 points to drop below the 22,000 mark. This downturn coincided with a surge in global oil prices by more than 20 percent, triggered by a critical supply shock resulting from ongoing conflict in West Asia.
The recent US-Israeli military actions against Iran, followed by Iran’s retaliatory strikes on Gulf countries hosting American military bases, have disrupted refineries and energy infrastructure across the region. Additionally, the Strait of Hormuz, a crucial maritime passage, remains effectively closed.
Consequently, the All Share Price Index (ASPI) closed down 3.51 percent, or 797.77 points, settling at 21,904.14. The S&P SL20 index also fell, closing down 3.40 percent, or 216.02 points, at 6,144.73. Since reaching the 24,000 mark during intra-day trading on February 19, the ASPI has declined by over 2,000 points.
Brokers have attributed the market’s volatility over the past week to the prevailing global uncertainty. They observed a “massive decline” as investors engage in quick day trading to secure profits amidst the instability, rather than adopting long-term positions.
Among the top negative contributors to the ASPI were Commercial Bank, which fell 4.09 percent to Rs.205.25, John Keells Holdings, down 4.29 percent to Rs.20.10, Hatton National Bank, which decreased by 3.85 percent to Rs.412.50, Sampath Bank, down 3.38 percent to Rs.150.25, and National Development Bank, which dropped 4.70 percent to Rs.137.00.
The market turnover was reported at 5.82 billion rupees, with significant contributions from the sale of banking stocks (1.86 billion rupees) and capital goods (1.22 billion rupees).
In a related development, six companies have assumed the functions of the Ceylon Electricity Board (CEB) following its cessation of operations on Monday. As per a stock exchange filing, the companies are:
- National System Operator (Pvt) Limited
- Electricity Generation Lanka (Pvt) Limited
- National Transmission Network Service Provider (Pvt) Limited
- Electricity Distribution Lanka (Pvt) Limited
- Energy Ventures Lanka (Pvt) Limited
- CEB Employees Funds (Pvt) Limited
According to the disclosure, Electricity Distribution Lanka will assume responsibility for the debenture liabilities of the CEB.
(Colombo/March 9/2026)
