The latest import tariff measures introduced by US President Donald Trump on April 2 have triggered a global economic crisis, sending shockwaves through financial markets around the world.Several international stock markets have experienced sharp declines, with Asian markets among the hardest hit.Sri Lankas Colombo Stock Exchange (CSE), the countrys only stock market, has also been adversely affected by these developments.
Following the announcement of the tariff decision, the CSE has suffered a significant downturn, recording a wipeout for three consecutive trading days.At the close of trading on April 2, the All Share Price Index (ASPI) stood at 16,007.44 points.
By the end of trading on April 7, it had plummeted to 14,660.45 pointsmarking a steep drop of 1,346.99 points, or 8.41%, over just three trading days.Meanwhile, the total market capitalization of the CSE, which was Rs.
5,688.56 billion as of April 2, fell to Rs.
5,253.18 billion by April 7.
This represents a staggering wipeout of Rs.
435.37 billion in market value over the three-day period.Notably, the market was wiped out by Rs.
227 billion on April 07 alone, underscoring the severity of the market reaction.