Market News
View all(124)📈 Foreign Investors Sell Sri Lanka Rupee Bonds for Second Straight Week
• Outflow Figures: Offshore investors recorded a net selling of Rs. 8.61 Bn (US$ 26.1 Mn) in local currency bonds for the week ended October 29. Cumulative foreign outflows reached Rs. 22.4 Bn over the last four weeks. • YTD Trajectory: Net foreign inflows into rupee bonds stand at ~Rs. 49.7 Bn year-to-date, following a net inflow of Rs. 71.5 Bn in the previous year. Overall, net foreign selling occurred in 4 out of the last 20 weeks. • Currency & Macro Dynamics: Sell-offs follow downward pressure on the local currency, which has depreciated 6.8% through October 30. Currency pressure stems from elevated oil and vehicle imports alongside geopolitical conflicts in the Middle East. • Policy Measures: The rupee has stabilized after the Central Bank raised key policy rates by 100 bps in May to manage demand-side inflation, following a ~50% fuel price increase.
📉 Sri Lanka Stocks Close Down as ASPI Sheds 0.62%
• Market Indices & Overview: - Benchmark ASPI dropped 0.62% (-124.82 points) to close at 20,142.33. - S&P SL20 fell 0.40% (-23.28 points) to 5,750.64. - Total market turnover reached Rs 958.58 Mn. • Sector & Stock Movements: - Banks led turnover with Rs 185 Mn, supported by Commercial Bank’s Rs 50.00 Mn crossing. - Top Gainers: Union Assurance (+4.08%), DCSL (+1.10%), Ceylon Tobacco (+0.59%), and John Keells Holdings (+0.55%). - Top Losers: Ambeon Holdings (-10.72%), LOLC Holdings (-3.66%), Royal Ceramics (-2.98%), HNB (-1.31%), and Dialog Axiata (-0.68%). • Corporate Updates: - Softlogic Finance PLC recorded a net loss of Rs 100.6 Mn for Q2 ended Sept 30, 2026, swinging from a net profit of Rs 84.3 Mn YoY. - Board proposed a 5-for-12 rights issue at Rs 2.50/share to raise Rs 1.00 Bn to bolster capital and expand vehicle leasing, pending shareholder approval on Nov 13, 2026.
📈 Sri Lanka Rupee Closes at 332.50/62 against US Dollar; Bond Yields Broadly Steady
• Currency Market: The Sri Lankan rupee (LKR) closed slightly firmer at 332.50/62 against the US Dollar spot on Friday, up from 332.55/65 in the previous trading session. • Government Securities: Treasury bond yields closed broadly steady across key maturities: • 01.08.2030: 11.57/65% (up from 11.55/60%) • 01.02.2031: 11.85/85% (up from 11.70/75%) • 15.12.2032: 12.10/20% • 01.06.2033: 12.20/35% • 15.08.2036: 12.80/95%
📈 Colombo Stock Exchange Ends Week Up 2.32% Despite Friday Dip
• Weekly Performance: The All Share Price Index (ASPI) gained 2.32% overall for the week, while the S&P SL20 rose 2.36%, reversing three sessions of gains on Friday. • Daily Indices: The ASPI fell 0.62% (-124.82 points) to close at 20,142.33. The S&P SL20 dropped 0.48% (-27.52 points) to settle at 5,746.40 due to profit-taking on index-heavy counters. • Trading & Foreign Flows: Daily turnover exceeded Rs. 958.5 Mn with over 48.6 Mn shares traded. Foreign investors were net sellers, recording a net outflow of Rs. 72.3 Mn. • Key Movers: Market breadth was negative with 149 losers against 54 winners. Major drags on the ASPI included HNB, LOLC, GREG, DIAL, and LAMB. • Sector Breakdown: The banking sector dominated daily turnover with a 19% share, while diversified financials and capital goods combined to contribute 29%. Activity remained largely retail-driven and subdued.
📈 CBSL Open Market Operations Summary - 30 Oct 2026
• Overnight Money Market: Total liquidity transactions saw the Call Money Market record Rs. 25.15 Bn in gross volume (Weighted Average Rate: 9.04%), while the Repo Market recorded Rs. 72.30 Bn (Weighted Average Rate: 9.10%). • Open Market Operations: Central Bank accepted Rs. 10.70 Bn out of Rs. 50.00 Bn offered at the Overnight Repo Auction at a weighted average yield of 8.75% (maturity on 2 Nov 2026). • Standing Facilities: Commercial banks utilized the Standing Deposit Facility for Rs. 121.03 Bn, while the Standing Lending Facility stood at Rs. 50 Mn. • CBSL Holdings: Central Bank’s Treasury Bills & Bonds holdings reached a face value of Rs. 2,492.62 Bn (book value of Rs. 1,500.29 Bn).
📈 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.