Colombo Stock Market Navigates Volatility Amidst Significant Foreign Outflows

The Colombo Stock Exchange (CSE) has experienced significant volatility recently, with the All Share Price Index (ASPI) fluctuating across trading days. While the ASPI saw gains of 435.13 points on May 25th, it also recorded sharp declines, including a drop of 592.28 points on May 18th and 250.79 points on May 4th. A major concern has been the substantial outflow of foreign investment; on May 26th, a net foreign outflow of Rs 3.03 billion was reported. Cumulative foreign investment outflow by the end of May reached USD 103.4 million, influenced by external factors and a strengthening US dollar, according to Central Bank data.