Sri Lanka’s financial markets staged a sharp relief rally on April 8 as news of a Pakistan-brokered US-Iran ceasefire and the prospective reopening of the Strait of Hormuz reversed weeks of war-premium pricing across stocks, bonds and the rupee.
The All Share Price Index closed up 859.51 points, or 4.09 per cent, at 21,891.97. Turnover reached Rs. 1.75 billion, with capital goods leading sector activity at Rs. 386 million. John Keells Holdings rose 6.49 per cent, Commercial Bank gained 6.01 per cent, Hatton National Bank added 4.58 per cent, Hayleys 4.27 per cent and Melstacorp 3.24 per cent — a broad-based rebound across blue chips most exposed to imported fuel and freight costs.
The rupee firmed to 315.10/25 against the US dollar from 315.40/50 a day earlier, EconomyNext reported. Sovereign bond yields dropped sharply across the curve: the July 2028 paper traded at 9.30/50 per cent from 9.70/80 per cent, the March 2031 at 9.90/10.00 per cent from 10.10/25 per cent, and the June 2033 long bond at 10.75/85 per cent from 10.95/11.05 per cent. The Central Bank simultaneously held a Rs. 30 billion Treasury bill auction.
Brent crude slipped below $90 a barrel during Asian trading after the ceasefire announcement, with traders pricing in the eventual return of Iranian and Gulf shipments through Hormuz. The two-week truce window remains fragile — Iran has yet to drop its compensation demand and Israel has said the ceasefire does not apply to Lebanon — but the immediate market reaction reflects a sharp easing of the energy import shock that had pressured Sri Lanka’s external position.
