The Colombo Stock Exchange suffered a sharp decline today, in line with global markets, following a military strike by Israel on Iran that sparked renewed geopolitical tensions and sent shockwaves across financial markets. The escalation prompted a rush into safe-haven assets and heightened investor anxiety across the globe.

The benchmark All Share Price Index (ASPI) plunged by 234.37 points or 1.33% to close at 17,427.08, while the S&P SL20 index dropped by 83.15 points or 1.58% to end at 5,191.86.

The downturn was significantly influenced by steep losses in heavily weighted banking stocks, including Hatton National Bank (HNB), DFCC Bank, and Sampath Bank. Their declines, along with negative movements in major companies such as Melstacorp and John Keells Holdings, had a pronounced effect on dragging the ASPI lower.

Declines were recorded in 173 out of 286 listed stocks, indicating a broad sell-off.

Market turnover reached Rs. 3.98 billion with a share volume of 164.7 million. Analysts said the intensifying geopolitical tensions in the oil-rich Middle East and continued global economic uncertainty — aggravated by erratic trade policies from the United States — have made investors increasingly risk-averse.

Local investors, already cautious due to domestic economic adjustments, appeared to follow global cues, resulting in a broad-based retreat across all sectors.