Sri Lanka’s stock market has suffered a significant setback, with over Rs. 1 trillion wiped off its value amid escalating tensions in the Middle East.

The conflict began on February 28, 2026, when the United States and Israel launched attacks on Iran, triggering a wider regional crisis. The situation has not only destabilised the Middle East but has also raised concerns over a potential global energy crisis.

The impact of the conflict has been strongly felt across global financial markets, particularly due to heightened volatility in crude oil prices.

Sri Lanka’s stock market, which is highly sensitive to global developments, has also come under severe pressure during this period.

At the close of trading on February 27, 2026, the last trading day before the conflict began, the Colombo Stock Market’s total market capitalisation stood at Rs. 8.41 trillion.

However, by March 18, 2026, the total market capitalisation had declined to Rs. 7.36 trillion.

Accordingly, the Colombo Stock Market has lost approximately Rs. 1.14 trillion in value during the period from February 28 to March 18.

Meanwhile, the All Share Price Index fell by 3,093.43 points from 23,734.06 to 20,640.63 marking a decline of around 13% over the same period.