Sri Lanka, May 21 -- The Colombo Stock Exchange witnessed a volatile trading session today, as early optimism driven by easing geopolitical tensions in the Middle East was later overshadowed by concerns surrounding the sharp depreciation of the Sri Lankan Rupee against the US Dollar. Positive developments regarding the de-escalation of the Middle East conflict initially lifted investor sentiment, helping the ASPI gain nearly 280 points during the first hour of trading.

However, the market failed to sustain these gains as panic selling emerged following the rapid increase in the USD/LKR exchange rate. The sharp currency movement created renewed uncertainty among investors, prompting cautious trading behavior and dragging the market signif...