Prolonged W Asian crisis will unsettle markets By Duruthu Edirimuni Chandrasekera View(s): View(s):The escalation of conflict in West Asia has caused significant volatility in the Colombo stock market on Tuesday, with analysts indicating that a prolonged crisis will spiral the economy. On March 3, the All-Share Price Index (ASPI) experienced its largest single-day drop, declining by 1,290.68 points (-5.44 per cent) to 22,443.38. A market-wide circuit breaker was activated within minutes due to the S&P SL20’s over 5 per cent drop, halting trading. Economists predict a prolonged crisis, which will lead to inflation, which in turn will hinder recovery, with potential opportunities for Colombo as a transshipment hub arising from shipping diversions. “West Asia is our vital corridor, channelling tea, oil, remittances and tourists etc.

Source: Sunday Times March 07, 2026 19:17 UTC