The stock market in Sri Lanka has remained steady following an initial 4% drop in the broader indices after the Easter Sunday terror attacks.
In a surprising development, during the first week of trading since the market opened after the bombings, stocks saw a net foreign inflow of over Rs1.5bn (US$9mn). Analysts were surprised at how strong the market has held up considering the magnitude of the ISIS inspired global terror attack in Sri Lanka.
During the week there was significant net foreign buying in stock market bellwether John Keells Holdings . JKH had been seeing consistent net foreign selling over the last few months, so the foreign buying may be an indication that sellers have already been washed out.
The city of Colombo remains unusually quiet, with curfew during the night making streets almost completely empty.