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View all(119)📈 Sri Lanka Stocks Open Higher as Banks Lead Turnover
The Colombo Stock Exchange (CSE) opened on a positive note on Friday, driven by gains in key commercial and diversified shares. • Overall Indices • ASPI: Up 0.29% (+59.43 points) to 20,326.58 • S&P SL20: Up 0.52% (+30.01 points) to 5,803.93 • Total market turnover stood at Rs. 222.28 Mn, with banking sector stocks leading liquidity at Rs. 98.90 Mn. • Market Movers • Top Gainers: LOLC Finance (+4.44% to Rs. 4.70), Distilleries Co. (+0.92% to Rs. 55.00), John Keells Holdings (+0.55% to Rs. 18.20), and Hatton National Bank (+0.33% to Rs. 384.00). • Top Losers: Asiri Hospital (-2.72%), Richard Pieris (-2.66%), ACL Cables (-1.66%), Royal Ceramics (-1.38%), and Sunshine Holdings (-1.37%). • Corporate Updates • Poultry/Agriculture: Bairaha Farms PLC reported a 49.7% YoY fall in net profit to Rs. 213.7 Mn for the Sep 2026 quarter, impacted by higher taxes, finance costs, and raw material pressures (commodity levy on corn doubling to Rs. 50/kg). • Plantations: Watawala Plantations PLC declared a first interim dividend of Rs. 0.80 per share for FY2026/27 (XD date: Nov 9).
📈 Sri Lanka Raises Extra Rs2.5Bn via Treasury Bills On Tap
• Public Debt Management Office sold an additional Rs 2.50Bn in Treasury bills on tap, bringing total bills sold this week to Rs 88.983Bn. • Total market subscription for the tap option stood at Rs 2.50Bn. • Yield Breakdown: • 6-month bills: Sold at an average yield of 9.44%. • 12-month bills: Sold at an average yield of 9.95%. • This follows Wednesday’s (Oct 28) primary auction, where Rs 86.48Bn was raised out of the Rs 100Bn offered. • Settlement for the total bill issuance is scheduled for October 30, 2026.
📉 Sri Lankan Rupee Softens to 332.60/70 Against US Dollar; Bond Yields Remain Steady
• Foreign Exchange Rates: • USD/LKR: Quoted weaker at 332.60/70 spot compared to 332.55/65 on the previous day. • Telegraphic Transfer (TT) Rates: • USD: Buying 328.10 | Selling 337.10 • EUR: Buying 364.74 | Selling 378.52 • GBP: Buying 438.48 | Selling 452.59 • Government Securities & Bond Yields: • Overall market bond yields remained generally steady. • May 15, 2030: 11.45/47% (up from 11.40/45%) • Oct 15, 2030: 11.62/65% (down from 11.63/67%) • Dec 01, 2031: 11.85/90% (down from 11.85/93%) • Dec 15, 2032: 12.10/18% (down from 12.15/25%) • Oct 15, 2034: 12.60/63% (down from 12.60/65%)
📈 Rs. 100 Bn T-Bond Auction Fully Subscribed Amid Active Secondary Market Trading
• Auction Overview: CBSL successfully raised the full Rs. 100 Bn offered in Phase 1. Strong demand saw the bid-to-accepted ratio reach 2.19x. • Auction Yield Breakdown: • 15.05.30 Maturity: Weighted average yield at 11.44% (in line with pre-auction market quotes). • 15.10.34 Maturity: Weighted average yield at 12.61% (marginally above market quotes). • 15.08.36 Maturity: Weighted average yield at 12.85% (above pre-auction market expectations). • Secondary Market Activity: Yields edged up slightly along the curve post-auction as market rates adjusted. Renewed buying interest pushed post-auction trading volumes significantly higher. Key trades included 15.09.29 at 11.15%, 15.10.34 at 12.60%–12.65%, and 15.08.36 at 12.88%–12.90%. • Money Market Liquidity: Net liquidity surplus stood at Rs. 116.34 Bn. CBSL absorbed Rs. 37 Bn via overnight repo (8.75%) and Rs. 10 Bn via 31-day term repo (9.23%). Overnight call money and repo weighted average rates settled at 9.03% and 9.09% respectively. • Forex Market: USD/LKR spot rate closed slightly lower at Rs. 332.55/332.65 (vs. Rs. 332.50/332.60 previously). Daily traded volume was reported at US$ 55 Mn.
📈 CSE Crosses 20,000-Point Mark Amid Bullish Rally
• Market Indices: The All Share Price Index (ASPI) gained 1.49% (+296.93 points) to close at 20,267.15, crossing the 20,000 threshold. The S&P SL20 rose 1.43% (+81.35 points) to 5,773.92, extending the market's rally to three consecutive days. • Turnover & Foreign Activity: Market turnover reached nearly Rs. 2.3 Bn with 117.4 Mn shares traded. High-net-worth (HNW) and retail participation remained active, though foreign investors recorded a slight net outflow of Rs. 21 Mn. • Key Sectors & Movers: The banking sector led daily turnover, accounting for 29%, driven by strong HNW interest. Diversified financials and materials collectively contributed 31%. Top positive ASPI contributors were DIST, HNB, DIAL, SUN, and SAMP. • Market Sentiment: Market positivity was boosted by domestic buying interest and easing global oil prices tied to Middle East peace talk expectations.
📈 Sri Lanka's Corporate Bond Market Too Shallow for 7% Growth Goal: IIX
Sri Lanka’s corporate bond market, currently standing at ~1% of GDP, is insufficient to fund the private sector-led growth required to sustain a 7% annual economic expansion through 2030, according to Impact Investment Exchange (IIX). • Key Highlights & Challenges: • Economic Growth Target: Sri Lanka aims for ~7% annual growth (nearly double the current rate) alongside doubling national exports. • Public vs. Private Investment: Public investment remains static at ~3% of GDP, placing the primary burden of driving national growth on private capital. • Banking Sector Limitations: While the banking base is undergoing a solid recovery, banking capital alone is insufficient to meet overall financing demands. • Capital Market Depth: Despite momentum from the CSE's GSS+ framework (12 bonds listed), the corporate bond market remains underdeveloped at ~1% of GDP. • Strategic Imperatives: • Deepening financial markets and diversifying funding channels are critical to support anchor value chains, national employment, and inclusive growth down to the last mile. • Sri Lanka must integrate existing frameworks—such as the Central Bank's sustainable finance roadmap and women entrepreneurship initiatives—to align with global capital standards.
📈 SEC Chief Calls for Capital Market Focus in Upcoming Budget
The Securities and Exchange Commission (SEC) Chairman has urged the Government to integrate capital market development into Sri Lanka's long-term economic strategy. • Growth Targets & Investment: Recent 4-5% economic growth is deemed insufficient; Sri Lanka must target sustained 7-9% growth backed by productivity, competitiveness, and increased equity/debt investments rather than relying solely on bank credit and government borrowing. • Budget Proposals & SOE Listing: Urged the Finance Ministry to support SEC-CSE proposals in the upcoming Budget to enable capital raising, attract long-term institutional investors, and consider listing commercially viable State-Owned Enterprises (SOEs). • CSE Performance & Market Stability: • Attributes recent All Share Price Index (ASPI) drops to Middle East geopolitical tensions, elevated international energy prices, foreign portfolio shifts, interest rate changes, and low liquidity. • Notes foreign outflows from equities coincided with inflows into Government securities. • Highlights a 40-year historical record of resilience (1985–2026) to reassure investors against panic-driven selling during thin trading periods. • Regulatory Warning: Warned market participants against exploiting thin liquidity or manipulating prices ahead of the Budget announcement, affirming that regulatory frameworks are active to penalize misconduct.
CSE Closes Up 1.5% as Banks Lead Market Turnover 📈
• Overall Indices: The benchmark ASPI gained 1.49% (+296.93 pts) to close at 20,267.15, while the S&P SL20 rose 1.26% (+71.63 pts) to 5,764.20. Market turnover reached Rs. 2.27 Bn. • Sector Breakdown: The banking sector led market activity, with the S&P/CSE Banks Industry Group contributing Rs. 658.6 Mn to total turnover. • Top Gainers: Beverage, food & tobacco and banking stocks drove gains, led by Distilleries Company (+4.81%), Sunshine Holdings (+5.43%), Sampath Bank (+2.33%), Hatton National Bank (+2.13%), and Dialog Axiata (+1.84%). • Top Losers: East West Properties (-3.09%), Vidullanka (-2.71%), Janashakthi (-2.20%), Union Assurance (-0.90%), and LOLC Holdings (-0.13%). • Major Crossings: Significant block trades were logged in Hatton National Bank (Rs. 375 Mn), Commercial Bank (Rs. 90 Mn), and Softlogic Life (Rs. 76 Mn).
🇱🇰 Sri Lankan Rupee Closes at 332.55/65 Against US Dollar; Bond Yields Broadly Steady 📈
• Foreign Exchange Market: Sri Lanka’s rupee closed at 332.55/65 against the US dollar (spot 1 week) on Thursday, edging down slightly from 332.52/60 recorded in the previous session. • Government Securities & Bond Yields: Secondary market bond yields remained broadly stable with selective marginal shifts across maturities: • 15.09.2029 bond: Closed flat at 11.08/15% • 01.08.2030 bond: Closed flat at 11.55/60% • 01.02.2031 bond: Down to 11.70/75% (from 11.72/75%) • 01.12.2031 bond: Down to 11.85/93% (from 11.88/93%) • 15.01.2033 bond: Adjusted to 12.25/35% (from 12.20/30%) • 15.10.2034 bond: Up to 12.60/65% (from 12.40/50%)
📈 Central Bank Open Market Operations - 29 Oct 2026
• Call Money Market: Weighted average rate held at 9.03% (range: 9.00%–9.08%) with a net volume of Rs. 29.12 Bn (gross Rs. 30.62 Bn). • Repo Market: Weighted average rate stood at 9.09% (range: 9.07%–9.10%) with total market turnover reaching Rs. 57.62 Bn. • CBSL Auctions: - Overnight Repo: Offered Rs. 40 Bn; accepted full Rs. 37 Bn in received bids at a weighted average rate of 8.75%. - Long-Term Repo (31 days): Offered Rs. 30 Bn; accepted all Rs. 10 Bn received bids at a weighted average yield of 9.23%. • Standing Facilities: Commercial bank absorption via Standing Deposit Facility reached Rs. 84.34 Bn, while Standing Lending Facility usage was Rs. 5.00 Bn. • CBSL Holdings: Central Bank T-Bills/Bonds portfolio stood at a face value of Rs. 2.49 Tn (book value of Rs. 1.50 Tn).
📉 Sri Lanka Rupee Bonds See Net Outflows After 3-Week Buying Streak
Foreign investors turned net sellers of Sri Lanka rupee bonds for the first time in four weeks in the week ended October 22, driven by downward pressure on the local currency. • Overall Bond Flows: - Weekly Net Outflow: Rs. 2.82 Bn (US$ 8.5 Mn) sold by offshore investors. - Recent Trend: Net foreign outflows reach Rs. 13.8 Bn over the last six weeks, reversing Rs. 5.5 Bn in net buying over the preceding three weeks. - Year-to-Date: Net inflows stand at ~Rs. 58.3 Bn so far this year (vs. Rs. 71.5 Bn total net inflows in the previous year). • Currency & Macro Context: - Rupee Performance: The Sri Lankan rupee has depreciated 6.7% year-to-date (through October 27) due to higher oil & vehicle imports and Middle East geopolitical tensions. - Monetary Action: The rupee has stabilized following the Central Bank's 100 bps policy rate hike in May to control inflation, which surged after a ~50% fuel price hike earlier in the year.
📈 Sri Lanka Market Update: Rupee Steady, Bond Yields Mixed, CSE Gains
• Foreign Exchange: The Sri Lankan rupee was quoted at 332.67/75 against the US dollar spot. Bank TT rates were 328.05 buying and 337.05 selling for USD, 363.39 buying and 377.17 selling for EUR, and 436.35 buying and 450.46 selling for GBP. • Government Securities: Bond yields traded steady to slightly lower across most maturities, though long-term paper saw a slight uptick: • Aug 2030: Flat at 11.55/60% • Oct 2030: Down to 11.60/62% (from 11.63/65%) • Feb 2031: Down to 11.70/75% (from 11.72/75%) • Mar 2031: Flat at 11.75/80% • Dec 2031: Down to 11.85/90% (from 11.88/93%) • Oct 2034: Up to 12.50/55% (from 12.40/50%) • Capital Markets: The Colombo Stock Exchange showed positive momentum. The All Share Price Index (ASPI) gained 0.60% (+120.00 pts) to reach 20,090, while the S&P SL20 rose 0.66% (+37.37 pts) to 5,729.