Sri Lankan shares log biggest intra-day gain in nearly 2 years amid tariff talk hopes

April 8 (Reuters) - Sri Lankan shares closed higher on Tuesday, tracking gains in Asian peers, on hopes that Washington is willing to negotiate some of the tariffs it has imposed on trading partners.

The CSE All-Share Index .CSE settled 3.19% higher to 15,127.71, led by industrial and financial stocks, marking its biggest intra-day gain since July 2023 when country's parliament approved a key debt restructuring plan.

Nuwara Eliya Hotels Co NEH.CM and Ceylon Beverage Holdings BREW.CM were the top gainers by index points, up 24.92 points and 23.54 points, respectively, on the day.

Asian stocks bounced off 1-1/2 year lows .MIAP00000PUS, European shares opened broadly higher .STOXX and U.S. stock futures ESc1 pointed to a positive open for Wall Street, where shares fell to their lowest in over a year on Monday before steadying.

Monday’s market decline was mainly driven by global market reactions to U.S. tariffs, brokerage First Capital Research said, while Tuesday’s recovery is due to the market’s small exposure to exports.

Adds, market may hold steady in the coming days, but concerns over tariffs persist as investors await the govt's response, with potential economic repercussions if no action is taken.

Trump's government imposed a 44% tariff on the island nation, which will affect about $3 billion of exports, Sri Lanka's finance ministry said in a statement.

Trading volume on the index fell to 148.8 million shares from 188.3 million in the previous session.

The equity market's turnover fell to 2.9 billion Sri Lankan rupees from 6.48 billion rupees in the previous session, according to exchange data.

Foreign investors were net buyers, purchasing stocks worth 151.6 million rupees, while domestic investors were net sellers, offloading shares worth 2.8 billion rupees, the data showed.

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