📈 CSE Ends Marginally Higher as ASPI Gains 29.77 Points
The Colombo Stock Exchange (CSE) concluded Thursday's trading session in positive territory, with both benchmark indices securing modest gains. • Market Indices & Performance: The All Share Price Index (ASPI) rose by 29.77 points to close at 21,447.57. The S&P SL20 Index gained 16.37 points to finish the day at 6,004.99. • Turnover & Key Value Drivers: Total market turnover for the session amounted to Rs. 1.48 billion. E.B. Creasy & Company PLC was the top contributor, generating Rs. 410 million in traded value, which included a crossing worth Rs. 260 million. ACL Cables PLC (industrial/manufacturing sector) was the only other entity to surpass the Rs. 100 million turnover mark, recording transactions totaling Rs. 114 million.
📉 T-Bill Rates Drop Across the Board; Rs. 120 Bn Fully Raised
Sri Lanka's weekly Treasury bill auction saw yields decline across all tenors for the first time in five weeks, fully securing its targeted capital. However, external geopolitical pressures marginally nudged secondary bond yields upward. • Auction Performance & Yields: The full Rs. 120 billion offered was successfully raised during the first phase. - 91-day tenor: Decreased by 8 basis points to 10.13% - 182-day tenor: Decreased by 3 basis points to 10.27% - 364-day tenor: Decreased by 1 basis point to 10.20% • Secondary Bond Market: Yields edged marginally higher, driven by cautious market sentiment following escalating Middle East geopolitical tensions and rising global oil prices. Notable trades included the 2030 maturities trading between 11.33% and 11.60%, while the long-term 2037 maturity traded at 12.65%. • Money Market Liquidity: The net liquidity surplus stood at Rs. 147.19 billion. The Central Bank of Sri Lanka (CBSL) absorbed excess liquidity by taking Rs. 87.19 billion through its Standing Deposit Facility Rate (SDFR) at 8.25%, alongside draining Rs. 60 billion via overnight and 7-day term repo auctions. Weighted average rates for overnight call money and repos stood at 8.95% and 9.00% respectively. • Forex Market: The USD/LKR spot contract closed unchanged at Rs. 336.30/336.40. The total market volume traded reached US$ 87.35 million.
📉 CSE Ends in Red Amid Heavy Foreign Selling
The Colombo Stock Exchange extended its bearish run for the third consecutive day, closing lower due to profit-taking and significant foreign outflows amid ongoing geopolitical uncertainty. • Overall Market Figures All Share Price Index (ASPI): Down 0.03% (-7.19 points) to close at 21,417.80. S&P SL20 Index: Down 0.14% (-8.38 points) to close at 5,988.62. Market Turnover: Recorded at Rs. 1.22 Bn with over 56.93 Mn shares traded. Foreign Participation: Net sellers with a heavy net outflow of Rs. 36.7 Mn. High-net-worth (HNW) investor participation remained low, while retail interest was average. • Sector & Stock Breakdown Banking Sector: Led daily turnover with a 27% share, though the sector index lost 0.31%. Main negative ASPI contributors included DIAL, HNB, CFIN, COMB, and BUKI. Sampath Bank closed flat at Rs. 137. Materials Sector: Contributed heavily to turnover, with the sector index rising 0.71%. Haycarb gained Rs. 8.50 to close at Rs. 175.75, and Chevron Lubricants appreciated by 25 cents to Rs. 198.25. Capital Goods: Along with Materials, collectively contributed 37% to turnover. John Keells Holdings rose 10 cents to Rs. 19.90, and Hayleys gained 50 cents to close at Rs. 230.50.
Globally Easing Inflation Sparks Asian Stock Rally as China Growth Slows 📈
A surprise drop in U.S. inflation has sparked a rally across volatile Asian stock markets, easing global interest rate hike fears, even as China’s economic growth slowed to 4.3% in Q2 due to weak domestic demand. • Market Movements: South Korea’s KOSPI index surged 7% ahead of key semiconductor earnings, Japan’s Nikkei rose 1%, and MSCI’s broadest Asia-Pacific index gained 2.4%. • U.S. Inflation Drop: June headline CPI fell 0.4%—its first drop since the pandemic. Annualised core inflation came in at 2.6% (below the expected 2.8%), slashing expectations of a July U.S. rate hike to just 16%. • China Growth Miss: China’s annual growth slowed to 4.3% in Q2, missing analyst expectations due to weak domestic demand and Middle East oil shocks, though June retail sales rebounded. • Oil & Currency Markets: Brent crude steadied at US$ 85.80/barrel after a 13% weekly surge, as geopolitical tensions remained high despite the U.S. scrapping proposed shipping fees through the Strait of Hormuz. The U.S. Dollar weakened, while the Chinese Yuan rose to a one-month high of 6.7635.
📈 Sri Lanka Secondary Bond Market Activity Picks Up Amid T-Bill Auction Focus
The secondary bond market saw a resurgence in activity as yields compressed from morning opening quotes, driven by steady institutional buying interest following the recent Treasury Bond auction outcomes. • Bond Yields Adjust: Yields adjusted downward on steady demand. The 01.08.30 and 15.10.30 maturities traded down to 11.50% and 11.57% respectively. Longer-tenor maturities like 15.10.34 and 01.07.37 traded down to 12.00% and 12.58% respectively. • Rs. 120 Bn T-Bill Auction: Today's scheduled Treasury Bill auction will offer Rs. 120 Bn (comprising Rs. 55 Bn on 91-day, Rs. 35 Bn on 182-day, and Rs. 30 Bn on 364-day maturities). This is slightly below the estimated maturing volume of Rs. 147.72 Bn. At last week’s auction, yields held steady with the 91-day rate at 10.21% and 182-day rate at 10.30%. • Money Market Liquidity: Net liquidity surplus was recorded at Rs. 151.99 Bn. The Central Bank absorbed Rs. 101.99 Bn via the Standing Deposit Facility (SDF) at 8.25%, and Rs. 50 Bn via an overnight Repo auction at a weighted average rate of 8.69%. Weighted average overnight call money and Repo rates stood at 8.96% and 9.00%. • Rupee Slips Marginally: In the forex market, the USD/LKR spot contracts closed slightly weaker at Rs. 336.30/336.40 compared to the previous close of Rs. 336.00/336.25. The total USD/LKR traded volume stood at US$ 45 Mn on 13 July.
📉 CSE Slides to 3-Month Low Amid Middle East Tensions
The Colombo stock market extended its losses for a second consecutive session, dipping to its second lowest point in three months as escalating Middle East tensions and rising global oil prices heavily weighed on investor confidence. • Market Performance: The ASPI dropped 0.50% (107.39 points) to close at 21,424.99, while the active S&P SL20 index declined by 0.37% (22.04 points) to end at 6,000.15. • Turnover & Volume: Daily market turnover reached nearly Rs. 1.1 Bn, with over 48.6 million shares changing hands. High-net-worth participation remained limited, while retail activity stayed at average levels. • Foreign Activity: Foreign investors continued to pull out of the market, recording a net foreign outflow of Rs. 126.9 Mn. • Sector Contributions: The banking sector led the market turnover with a 20% share. This was closely followed by the food, beverage & tobacco and materials sectors, which collectively contributed 28% to the daily turnover. • Key Stock Draggers: The primary negative contributors dragdown down the ASPI were Lion Brewery (LION), Melstacorp (MELS), Vallibel One (VONE), John Keells Holdings (JKH), and Carson Cumberbatch (CARS). • Top Turnover Drivers: Lanka IOC (LIOC) topped the turnover chart with Rs. 109 Mn, followed by Ceylon Cold Stores (CCS) at Rs. 96 Mn, and Dipped Products (DPL) at Rs. 82 Mn.
🛢️ Global Oil Climbs to 4-Week High Amid Strait of Hormuz Escalation
• Price Surge: Brent crude futures rose 2% (up $1.68) to US$ 84.98 per barrel, following a massive 9.6% surge in the previous session. U.S. West Texas Intermediate (WTI) crude increased by 2.1% (up $1.65) to US$ 79.79 a barrel. Prices are now at their highest level since June 17, 2026. • Geopolitical Triggers: The price spike follows the U.S. reinstating its naval blockade of Iran and intensifying military strikes. Concurrently, Iran launched cruise missile attacks on two UAE tankers in the Strait of Hormuz, resulting in crew casualties, while Yemen's Houthi movement targeted Saudi Arabia. • Impact on Sri Lanka: While this is a global development, rising crude prices directly pressure Sri Lanka's economy by driving up the national import bill for petroleum products. Higher energy costs historically impact production and transport costs for key domestic sectors like apparel & textiles and tea logistics, threatening inflation and putting pressure on foreign exchange reserves. • Market Outlook: Analysts note that while the Strait of Hormuz remains partially open, the competing military objectives have injected severe uncertainty into global energy supply chains, with further risks if regional attacks spread to Red Sea shipping lanes.
📈 Treasury Bond Auction Raises Rs. 150 Bn; Money Market Liquidity Surges
Sri Lanka’s central bank successfully raised the full Rs. 150 billion offered amount during the first phase of yesterday's Treasury Bond auction. • Auction Performance: Total demand was strong with a bid-to-acceptance ratio of 2.42 times. Weighted average yields across all tenors landed slightly above pre-auction secondary market quotes: • 2030 Maturity (15.10.2030): Issued at 11.57% (vs. secondary market's 11.47%–11.50%). • 2034 New Maturity (15.10.2034): Issued at 12.04% (vs. similar 15.06.2034 rate of 11.80%–11.90%). • 2037 Maturity (01.07.2037): Issued at 12.58% (vs. comparable 15.08.36 rate of 11.80%–12.00%). • Secondary Market: Trading remained exceptionally quiet and at a virtual standstill as market participants maintained a cautious, watchful stance surrounding the auction. • Money Market Liquidity: Net liquidity surplus jumped significantly to Rs. 152.35 billion (up from Rs. 116.72 billion previously). Commercial banks deposited Rs. 131.43 billion at the Central Bank's 8.25% SDFR, while the Domestic Operations Department drained Rs. 21 billion via an overnight repo auction at 8.74%. • Forex & Rupee: The Sri Lankan Rupee dipped marginally against the US Dollar. Spot contracts closed lower at LKR 336.00/336.25 compared to the previous close of LKR 335.70/335.85. Total USD/LKR traded volume stood at US$ 98.65 million. _Note: A direct issuance window is open for an additional 10% of the offered amount until 3:00 PM today (14 July). Data based on Wealth Trust Securities report._
📈 Global Stocks Slide as Gulf Tensions Trigger 4%+ Oil Surge
Global markets fell sharply on Monday as escalating conflict in the Gulf and Iran’s claimed closure of the Strait of Hormuz fueled a surge in energy prices, renewing global inflation concerns. • Energy Markets Spike: Brent crude surged 4.3% to US$ 79.31 a barrel, while US WTI climbed 4.4% to US$ 74.62. This rapid rise directly impacts energy-dependent economies like Sri Lanka, increasing global trade and import cost pressures. • Asian Equities Tumble: South Korea's KOSPI plunged 7.6%, extending steep losses in tech and semiconductor stocks. Japan’s Nikkei fell 2.2%, while the broader MSCI Asia Pacific index outside Japan dropped 1.8%. • US & European Outlook: US futures pointed lower (Nasdaq futures down 1.3%, S&P 500 futures down 0.6%). European markets are also set for weaker openings, with the Euro under pressure due to Europe's heavy reliance on imported energy. • Bonds & Currencies: Higher oil prices pushed US Treasury yields higher as investors dialed back expectations for Federal Reserve policy easing. The US Dollar index remained firm at 101.13, while investors shifted toward safe-haven assets. _Context_: For Sri Lanka's economy, global market volatility and rising oil costs historically exert pressure on import bills and foreign reserves, despite ongoing national efforts in industrial diversification.
📉 CSE Plummets 1.07% Amid Middle East Conflict Concerns
The Colombo stock market opened the week sharply lower on broad-based selling pressure driven by escalating geopolitical tensions in the Middle East. Overall Market Figures • ASPI dropped 1.07% (-233.18 points) to close at 21,532.38. • S&P SL20 fell 0.91% (-55.27 points) to end at 6,022.19. • Losers significantly outnumbered gainers by 178 to 41. • Daily market turnover reached over Rs. 1 Bn with 79.7 Mn shares traded. • Foreign sentiment remained negative, recording a net outflow of nearly Rs. 56 Mn. High net worth (HNW) participation was low, while retail interest was above average. Sector Performance & Key Decliners • Banking Sector: Led market turnover with a 27% share but the sector index lost 0.70%. Major decliners pushing the ASPI down included SAMP (down Rs. 1.50 to Rs. 137.25), HNB non-voting (down Rs. 7.75 to Rs. 320), and COMB (down Rs. 2.25 to Rs. 203). • Food, Beverage & Tobacco: Contributed heavily to turnover but dropped 0.64% as a sector, heavily weighed down by MELS (down Rs. 2.25 to Rs. 183.25). • Capital Goods: Along with Food & Beverage, collectively captured 32% of the daily turnover. Top Index Contributors • Main laggards: CTHR, COMB, SAMP, MELS, and HNB. • Positive cushions: BUKI, RICH, BREW, SEMB, and CDB.
📈 Asian Stocks Surge on AI Momentum Despite Middle East Escalation
Asian stock markets rose sharply on Friday, driven by tech and semiconductor firms as investors prioritized the artificial intelligence boom over intensifying U.S.-Iran conflict risks in the Middle East. • Market Performance: - South Korea's KOSPI led the region, jumping 4% to become the world’s best-performing major market since 2025. - Japan’s Nikkei climbed 1.8%, while the MSCI's broadest index of Asia-Pacific shares (ex-Japan) rose 1.3%. Taiwan markets remained closed due to a typhoon. • Tech & Semiconductor Drivers: - Momentum was fueled by Micron Technology’s plan to invest over US$ 250 Bn in the U.S. through 2035. - South Korean chip majors Samsung Electronics rose 3% and SK Hynix gained 1%. SK Hynix is set for a massive US$ 26.5 Bn U.S. ADR debut, marking the world's second-biggest share sale. Its domestic shares have surged 238% this year. • Commodities & Currencies: - Brent crude futures hovered at US$ 76.03 per barrel, heading for a 5% week-on-week gain due to threats to the Strait of Hormuz supply route. - The Japanese yen strengthened 0.5% to 161.51 per U.S. dollar, rebounding from 40-year lows following government hints to encourage domestic asset holdings via pension funds. Gold fell 1% for the week to US$ 4,113 per ounce.
📈 Asian Shares Rise on Chip Rally Amid Surging Oil Prices
Global market dynamics shifted on Thursday as semiconductor stocks rebounded, countering inflation fears driven by escalating tensions in the Gulf. Market Performance & Sectors • Asia-Pacific Markets: MSCI’s broadest index outside Japan rose 0.8%. Japan's Nikkei climbed 2.3%, breaking a three-day losing streak, while South Korea’s KOSPI jumped 3.8%. • Tech Rebound: The global tech sector got a boost as Samsung rose 3.6%, SK Hynix surged 7.5%, and Nvidia rallied 3.6% following reports that China will allow limited purchases of H200 AI chips. Commodities & Macroeconomic Impact • Oil Surge: Brent crude futures rose 0.8% to US$ 78.65 a barrel—up 9% this week—briefly crossing US$ 80.00 for the first time since June 22. This followed fresh US military strikes in Iran and the termination of the interim Gulf peace agreement. • Bonds & Interest Rates: Spurring global inflation fears, the oil surge triggered a bond sell-off. US 10-year Treasury yields climbed to 4.5852%, while market bets increased for Federal Reserve interest rate tightening by 38 basis points this year. • Currencies & Gold: The US dollar dipped 0.2% to 162.38 yen, remaining near 40-year peaks. The Euro rose 0.1% to US$ 1.1428, while Gold remained flat at US$ 4,079 per ounce. _Note: Summarized based on international market data available on July 9, 2026. High oil prices historically impact Sri Lanka's import bills and energy costs._
Global Market Turmoil: Oil Surges 5% & Stocks Tank Amid US-Iran Hostilities 📈
• Energy Market Surge: Global oil prices jumped over 5% after the US declared its ceasefire with Iran "over" following fresh attacks in the Strait of Hormuz. Brent crude surged 5.3% to US$ 78.10/barrel, while West Texas Intermediate (WTI) rose 5.4% to US$ 74.31/barrel. • Global Equity Decline: Investor flight from risk assets pulled major stock indices down. Dow Jones futures dropped 0.7% (-351 points), while S&P 500 and Nasdaq-100 futures lost 0.4% and 0.5% respectively. Europe’s STOXX 600 fell 1.5%, with energy being the sole gaining sector. • Asian Market Impact: Regional markets faced heavy selling. South Korea’s KOSPI tumbled 5.4% into bear market territory, and Japan’s Nikkei 225 fell 2.1%. Mainland China's CSI 300 slipped 0.3%, though Hong Kong’s Hang Seng bucked the trend, gaining 3.2%. • Economic Context: The escalation directly impacts the Strait of Hormuz, a critical maritime artery for global energy supplies. For an import-dependent economy like Sri Lanka, sustained high global oil prices historically pressure foreign reserves and inflate domestic fuel and energy costs, impacting manufacturing sectors like apparel & textiles and escalating logistics costs across supply chains.
📈 T-Bill Rates Hold Steady; Full Rs. 100 Bn Raised as Bond Yields Rise on Geopolitical Tensions
• Treasury Bill Auction: Weighted average yields held stable, breaking a two-week streak of increases. The Rs. 100 Bn offer was fully raised during Phase I, with total bids jumping to 2.30 times the offered amount (up from 1.66 times last week). • 91-day: Reduced by 02 bps to 10.21% (absorbed bulk of volume) • 182-day: Unchanged at 10.30% • 364-day: Edged up 01 bps to 10.21% • Secondary Bond Market: Yields increased on moderate volumes, driven by renewed Middle East tensions, US sanctions on Iranian oil, and rising global oil prices. • 2028 maturities traded at 10.70%. • 2030 maturities traded between 11.30% - 11.37%. • 2033/2034 long-term maturities traded between 11.70% - 11.82%. • Forex Market: The Rupee dipped against the US Dollar. The USD/LKR spot contracts closed lower at LKR 335.75/336.20 compared to the previous day's close of Rs. 334.85/335.00. Total traded volume stood at US$ 81.42 Mn. • Money Market Liquidity: Net liquidity surplus was recorded at Rs. 125.89 Bn. The Central Bank drained Rs. 30 Bn via an overnight repo auction at a weighted average rate of 8.75%. Overnight call money and repo rates averaged 9.15% and 9.16% respectively.
📈 Global Markets Wobble on Mideast Hostilities and AI Jitters
A resurgence in Middle East fighting and renewed U.S. sanctions on Iranian oil have disrupted global markets, driving energy costs up while pulling bond and equity markets down. • Energy & Inflation Risk: Brent crude futures climbed 2% to US$ 75.60 a barrel. While below historic war peaks, the rise creates immediate inflation risks for oil-importing nations, worsened by U.S. Strategic Petroleum Reserve stocks hitting their lowest levels since 1983. • Bond Market Pressures: Ten-year U.S. Treasury yields rose 3 basis points to a one-month high of 4.565% as investors factor back in a geopolitical risk premium. • Currencies: The U.S. dollar remained firm, pushing the Euro back to US$ 1.14 and climbing past 162 Yen, increasing the likelihood of Japanese market intervention. • Tech & Equity Pullback: The global AI-driven stock rally slowed. Despite flagging a 19-fold profit increase, Samsung Electronics fell up to 7%, dragging South Korea's chip-heavy market down 1.5% and pulling the Philadelphia semiconductor benchmark down 4.6% due to short-term profit-taking. _Context for Sri Lanka_: Rising global oil prices and a strengthening U.S. dollar typically pressure local fuel pricing, import costs, and foreign reserves, keeping pressure on key industrial inputs for domestic manufacturing.
📈 Bond Yields Steady as Activity Picks Up; Rs. 100 Bn T-Bill Auction in Focus
• Bond Market Overview: Secondary bond market activity saw a marginal pickup, concentrated heavily on the short end of the yield curve. Short-term maturities (2028) traded between 10.50% and 10.65%, 4-year segments (2030) ranged from 11.10% to 11.33%, and the belly end (2032) traded at 11.60%. • Treasury Bill Auction: A Rs. 100 Bn T-Bill auction is scheduled for today, offering Rs. 50 Bn (91-day), Rs. 35 Bn (182-day), and Rs. 15 Bn (364-day). This follows last week's auction where weighted averages rose across all tenors (91-day and 182-day up 9 bps to 10.23% and 10.30%; 364-day up 3 bps to 10.20%), showing a clear front-end bias in government securities re-pricing. • Money Market Liquidity: Net liquidity surplus stood strong at Rs. 134.77 Bn. Market participants deposited Rs. 120.97 Bn at CBSL's 8.25% SDFR, while CBSL drained Rs. 13.80 Bn via an overnight repo auction at 8.75%. Overnight call money and repo weighted average rates closed at 9.17% and 9.19% respectively. • Forex Market: The USD/LKR spot exchange rate held steady, closing at Rs. 334.85/335.00 against the previous day's Rs. 334.90/335.00. The total traded volume stood at US$ 66.70 million.
📉 CSE falls below 22,000 points on 6th consecutive day of losses
The Colombo Stock Exchange (CSE) extended its decline for a sixth straight session yesterday due to broad-based selling pressure, dragging the main index below the 22,000 mark. • Market Performance: The ASPI fell 0.54% (down 118.35 points) to close at 21,962.30, while the S&P SL20 index dipped 0.51% (down 31.55 points) to 6,135.50. • Turnover & Volume: Daily turnover surpassed Rs. 1.5 Bn with nearly 58 million shares traded. Market breath was significantly negative, with 169 decliners outpacing 49 gainers. • Investor & Sector Activity: High-net-worth and institutional participation remained slightly active via negotiated crossings, while retail interest was average. Foreign investors recorded a net outflow of Rs. 185 Mn. The capital goods sector led market turnover with a 31% share, heavily driven by activity in John Keells Holdings (down 10 cents to Rs. 20) and Access Engineering (up 30 cents to Rs. 78.40). The retailing and materials sectors collectively contributed 22% to the day's turnover. • Top Drags & Contributors: The primary negative drivers for the ASPI were Dialog Axiata, Melstacorp, and John Keells Holdings. Meanwhile, counters like Chevron Lubricants saw positive movement, appreciating by Rs. 1.25 to close at Rs. 200.50.
📉 Colombo Stock Market Drops Below 22,000 Mark
The Colombo Stock Exchange (CSE) experienced a notable downturn today (07 July 2026), with benchmark indices sliding below critical thresholds amid pressure on major blue-chip and financial sector stocks. • Market Indices Overview: The benchmark All Share Price Index (ASPI) fell by 118.35 points to close at 21,962.30, marking its first dip below the 22,000-point threshold since June 12. The blue-chip S&P SL20 index declined by 31.55 points to end at 6,135.50. • Key Drivers & Sectors: The slump was primarily driven by price drops in heavyweights like Dialog Axiata and Melstacorp. Other major contributors to the downward trend included John Keells Holdings (JKH), Carsons Cumberbatch, and CIC. The banking sector also faced pressure, with NDB, HNB, and Sampath Bank all recording price declines. • Turnover & Trading Activity: Despite the index decline, daily market turnover reached LKR 1.53 Bn. Activity was supported by crossings, particularly in JKH, which generated LKR 264 Mn in crossings and a total daily turnover of LKR 306 Mn. Sathosa Motors also saw high activity, recording a turnover of LKR 126 Mn (including crossings), while most other listed companies stayed below LKR 100 Mn.
📈 Bond Market Starts Slow; Yields Steady as Rupee Appreciates
• Market Sentiment: The secondary bond market commenced the trading week on a slow note with dull activity and considerably lower transaction volumes. Yields continued to consolidate at prevailing levels. • Yield Breakdown: - 01.08.30 maturity traded at 11.25% - 15.01.33 maturity traded at 11.60% - 01.11.33 maturity traded at 11.66% - 15.03.35 maturity traded at 11.70% - 15.06.35 maturity traded at 11.75% • Money Market & Liquidity: Net liquidity surplus increased to Rs. 132.29 Bn (vs Rs. 128.47 Bn previously). Rs. 112.29 Bn was deposited at the Central Bank's SDFR of 8.25%. The Domestic Operations Department drained Rs. 20 Bn via an overnight repo auction at a weighted average rate of 8.75%. Weighted average rates for overnight call money and Repo stood at 9.18% and 9.21% respectively. • Forex Market: The Sri Lankan Rupee (LKR) appreciated marginally against the US$ to close at Rs. 334.90/335.00 compared to the previous close of Rs. 335.20/335.30. Total USD/LKR traded volume for July 3 stood at US$ 88.25 Mn.
🔴 CSE Opens the Week in Red Amid Subdued Sentiment
The Colombo stock market commenced the week down as investor sentiment remained subdued with low high-net-worth (HNW) participation, balanced by a slight rise in retail interest. • Overall Market Figures: The All Share Price Index (ASPI) fell 0.44% (-98.08 points) to close at 22,080.65. The active S&P SL20 also slid 0.44% (-27.17 points) to 6,167.05. Market turnover recorded over Rs. 1.35 Bn with over 41.7 Mn shares traded. Foreign investors remained net sellers, marking a net outflow of Rs. 315.8 Mn. • Sector Breakdowns: • Utilities: Led daily turnover with a 28% share, though the sector index lost 0.36%. Windforce Ltd. was the top turnover contributor, dipping by 10 cents to Rs. 40.90. • Capital Goods: Second highest contributor to turnover, with the sector index decreasing by 0.12%. John Keells Holdings lost 10 cents to close at Rs. 20.10, while Hemas Holdings closed flat at Rs. 32.80. • Banking: Formed part of the collective 26% turnover contribution alongside Capital Goods, though heavyweights like Hatton National Bank (HNB) faced negative pressure. • Key Market Drivers: The main negative contributors pulling down the ASPI were CINS, HNB, RIL, DIAL, and CFIN. HNW and institutional activity focused on Windforce, Hemas Holdings, and HNB (non-voting). Singer Sri Lanka bucked the trend slightly, gaining 10 cents to close at Rs. 75.10, while Ceylon Cold Stores dropped Rs. 1.75 to close at Rs. 128.25.
📈 June National Tea Sales Average Dips, H1 2026 Marginally Up
Based on provisional data from Forbes & Walker Research, Sri Lanka's tea sector saw mixed results as the June National Sales Average (NSA) declined month-on-month (MoM) but showed slight resilience year-on-year (YoY). • Overall Figures: The June NSA stood at Rs. 1,153.49 (US$ 3.45), down by Rs. 31.07 (US$ 0.20) compared to May 2026. However, compared to June 2025, the rupee average rose by Rs. 50.22, though its US dollar equivalent fell by US$ 0.23. • H1 2026 Cumulative Performance: The first six months recorded a cumulative NSA of Rs. 1,162.09 (US$ 3.66), reflecting a marginal YoY increase of Rs. 3.55. Due to exchange rate dynamics, the dollar-denominated average fell by US$ 0.23 YoY from US$ 3.89. • Elevation Breakdowns (MoM vs YoY): - High Grown: Suffered the sharpest MoM drop, falling Rs. 64.64 (US$ 0.29). YoY, it gained Rs. 52.40 but lost US$ 0.19. This was the only category with a positive year-to-date (YTD) variance in rupee terms. - Medium Grown: Declined MoM by Rs. 53.74 (US$ 0.25) and YoY by Rs. 29.82 (US$ 0.43). - Low Grown: Marginally dipped MoM by Rs. 12.61 (US$ 0.15) but showed a strong YoY rupee gain of Rs. 72.02, despite a US$ 0.19 dollar decline. Both Medium and Low Grown categories posted negative YTD variances in both currencies.
💵 US Dollar Selling Rate Drops Below Rs. 340
The exchange rate pressure on the Sri Lankan Rupee (LKR) throughout June 2026 is showing gradual signs of easing, leading to a steady decline in the US Dollar value from June 24 to July 6. • Current Rates: For the first time since June 23, the selling rate of the US Dollar fell below the Rs. 340 mark today (July 6). The Central Bank of Sri Lanka (CBSL) recorded the buying rate at Rs. 330.39 and the selling rate at Rs. 339.88. • Year-to-Date Performance: Despite the recent recovery, the year-to-date depreciation of the Sri Lankan Rupee against the US Dollar stood at 7.7% as of July 3, 2026, according to official data. • Economic Impact: A stabilizing Rupee can influence crucial domestic sectors like manufacturing, apparel & textiles, and fuel imports by managing input costs and improving market predictability.
📈 Global Markets Ease Ahead of Tech Earnings; Oil Slips on Supply Boost
• Market Overview: Asian share markets eased on Monday as caution took hold prior to the AI sector's crucial earnings season. Japan's Nikkei fell 1.4%, South Korea's index dropped 1.2% (though remaining up 90% YTD), and MSCI's broadest Asia-Pacific index outside Japan edged down 0.2%. US futures trended slightly positive, with Nasdaq futures adding 0.7%. • Energy & Inflation: Brent crude fell 0.5% to near four-month lows at $71.79 a barrel, while U.S. crude lost 0.3% to $68.47. The drop follows an OPEC+ agreement to increase output targets by 188,000 barrels per day from August, alongside stable shipping through the Strait of Hormuz. • Interest Rates & Forex: Easing energy costs and soft U.S. payroll data led markets to scale back near-term Federal Reserve rate hike expectations, with futures pricing a 78% chance of unchanged rates on July 29. Conversely, New Zealand's central bank is expected to raise its 2.25% cash rate by 25 basis points on Wednesday. The US dollar index steadied at 100.880, while the yen hovered near 40-year peaks at 161.79 per dollar. • Corporate Earnings: Tech profits remain a core focus driven by global AI demand. Sector leader Samsung Electronics is projected to announce an 18-fold increase in operating profit, reaching an estimated 86 trillion won (US$ 56.35 Bn) for the April-to-June quarter. • National Context Note: The provided text contains global macroeconomic data and does not contain explicit details regarding Sri Lankan domestic sectors such as tea, apparel & textiles, or ICT/BPM.
CSE Declines 0.2% in June as Monthly Losses Extend 📈
The Colombo stock market continued its downward trend through June, marking its fourth monthly drop of the year despite a slight recovery in blue-chip shares. • Overall Market Figures: The All Share Price Index (ASPI) declined by 0.2% in June. Year-to-date (YTD) as of end-June, the ASPI is down by 1.6%. • Blue-Chip Performance: The active S&P SL20 index bucked the broader market trend, recovering from the previous month to post a 0.75% gain in June. However, its YTD performance remains down by 0.77%.
📉 CSE Ends Week Down 1% Amid Bearish Run
The Colombo Stock Exchange (CSE) extended its bearish run into four straight sessions, ending the week in the red. • Weekly Market Overview: The All Share Price Index (ASPI) fell by 1.03% to close at 22,178.73, while the active S&P SL 20 dropped 0.85% to 6,194.22. On the final trading day, 111 counters closed in the red against 92 in green. • Trading Volumes & Foreign Activity: Daily market turnover reached over Rs. 1.5 Bn with nearly 30.6 million shares traded. Foreign investors were net sellers, resulting in a net foreign outflow of Rs. 157.9 million. • Sector Performance: - Banking: The top contributor to weekly turnover, driven by Sampath Bank, Commercial Bank, and Hatton National Bank. The sector index edged down by 0.11%. Sampath Bank fell by Rs. 0.50 to Rs. 142, while Commercial Bank gained Rs. 0.25 to Rs. 208.75. - Capital Goods: The second highest turnover contributor, led by Access Engineering. The sector index decreased by 0.22%, though Access Engineering gained Rs. 0.30 to close at Rs. 78.20. • Key Stock Drivers: CINS, JKH, RCL, and SAMP heavily weighed down the ASPI. Conversely, DIAL, OLC, BUKI, and CARS provided positive market support. • Investor Participation: High net worth and institutional interest was concentrated in the banking sector and Access Engineering. Retail interest was active in apparel & textiles via Teejay Lanka, alongside Cargills Bank and LVL Energy Fund.
📈 Asian Markets Rebound as Cooling US Jobs Data Eases Rate Hike Fears
• Market Movement: After two days of declines, MSCI’s broadest index of Asia-Pacific shares (ex-Japan) rose 1.3%. Japan's Nikkei 225 reversed early losses to trade 0.7% higher, while South Korea's Kospi jumped 3.0% driven by a rebound in chipmaker stocks. • Economic Activity (PMIs): June regional Purchasing Managers' Index (PMI) data showed strong economic expansion. Japan's services sector returned to expansion, while China’s services activity expanded with overseas demand hitting a 20-month high. • US Factor: A lukewarm US jobs report for June showed sharply slowed job growth, dropping the unemployment rate to 4.2% as workers left the labor force. This cooling labor market doused expectations of a near-term Federal Reserve rate hike, pushing up the probability of steady rates in September to 46.8% (up from 35.8%). • Currency & Commodities: The US dollar index fell 0.2% to 100.80, with the dollar flat against the Yen at 161.125 amid holiday-thinned liquidity and intervention watches. Brent crude futures edged up 0.5% to US$ 72.12 a barrel, while Gold jumped 1.4% to US$ 4,179.73. _Note: Global macroeconomic shifts like US interest rate pauses and rising regional demand heavily impact external facing sectors in Sri Lanka, including apparel & textiles, tea exports, and logistics._
🛢️ Global Oil Prices Rise Slightly Amid U.S. Holiday & Middle East Peace Efforts
• Market Context: Oil prices nudged higher on Friday ahead of a long U.S. holiday weekend. The market reflects guarded optimism as U.S.-Iran peace efforts hold, though traders remain cautious until visual evidence of stabilization is clear. • Price Movements: • Brent futures rose 17 cents (+0.24%) to US$ 72.10 a barrel. • West Texas Intermediate (WTI) rose 14 cents (+0.20%) to US$ 68.83 a barrel. • For the week, Brent recorded a minor decline of 0.02% while WTI ticked up by 0.12%, marking the smallest weekly movements in months. • Supply & Regional Impact: • Nations are attempting to ramp up oil production following the reopening of the Strait of Hormuz, a critical maritime chokepoint that historically carried one-fifth of global oil and liquefied natural gas supplies. • Following the U.S.-Iran interim peace agreement, Kuwait’s oil production jumped drastically to 1.65 million barrels per day (bpd) in June, up from 580,000 bpd in May. • Shipping data reveals at least 5 supertankers carrying 10 million barrels of Saudi oil have exited the Strait, with Saudi Aramco shifting to spot pricing to accelerate sales into Asian markets. _Note: Summarized based on provisional market and shipping data._
📈 Institutional Inflows Drive Sri Lankan Bond Market Rally; Rupee Gains
• Market Momentum: The secondary bond market extended its rally, heavily driven by aggressive buying flows from large institutional and foreign buyers. High transaction volumes and block trades successfully compressed yields across the curve. • Yield Curve Performance: Demand was heavily concentrated on the 2030 and 2035 benchmark maturities. - 2030 Maturities: The 15.10.30 paper dipped to 11.23%-11.35% on massive volume, while 15.05.30 traded tightly at 11.12%-11.15%. - 2035 Maturities: The 15.03.35 maturity traded in a narrow band of 11.74%-11.75%. - Shorter Tenors: 2027 and 2028 maturities saw steady yields, holding between 10.50% and 10.70%. • Liquidity & Money Market: System liquidity remains strong, posting a net surplus of Rs. 81.20 Bn, all deposited at the Central Bank’s 8.25% Standing Deposit Facility Rate (SDFR). Overnight call money and repo weighted averages held steady at 9.21% and 9.25% respectively. • Forex & Rupee Appreciation: The Sri Lankan Rupee (LKR) appreciated marginally against the US Dollar, with spot contracts closing stronger at LKR 335.85/336.00 compared to the previous day's close of LKR 336.20/336.40. Total spot volume recorded for July 1 stood at US$ 132.50 Mn. _Data source: Wealth Trust Securities / Central Bank of Sri Lanka_
Global Oil Prices Drop 1% on US-Iran Progress; Brent at $70.78 📉
• Overall Figures: Global oil benchmarks fell for a third straight day on Thursday. Brent futures dropped by 1.1% (down 79 cents) to US$ 70.78 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 1.2% (down 84 cents) to US$ 67.74 a barrel. • Key Drivers: Indirect talks between the US and Iran in Doha concluded with "positive progress" regarding the Strait of Hormuz, which handles 20% of global oil supply. A memorandum halting previous conflict in June remains intact, ensuring the strait stays open and crude flows continue. • Market Impact: Expectations of oversupply and heightened competition for market share are driving prices down. Consequently, UBS cut its Brent price forecast for the September quarter by US$ 25 and for the December quarter by US$ 10, now projecting a H2 average of US$ 80 a barrel. Furthermore, OPEC+ is likely to agree to higher output targets from August during Sunday's meeting. • Sri Lankan Context: As a major net importer of crude oil and refined petroleum products, any sustained reduction in global energy benchmarks directly eases pressure on Sri Lanka's foreign exchange reserves, improves the trade balance, and lowers domestic production and transport costs across key manufacturing sectors. _Note: Data based on provisional market reports._
📈 T-Bill Rates Rise for Second Week; Full Rs. 100 Bn Raised Amid Bond Market Rally
• Treasury Bill Auction: Weighted average yields increased across all maturities for a second straight week, showing a front-end bias. - 91-day Bill: Rose by 9 basis points to 10.23% (raised more than its offered volume). - 182-day Bill: Rose by 9 basis points to 10.30%. - 364-day Bill: Edged up by 3 basis points to 10.20%. - Subscription: The full Rs. 100 Bn offered in Phase I was raised successfully, with total bids received at 1.66 times the offered volume. Phase II is open for 10% of the offered amount on 182-day and 364-day tenors. • Secondary Bond Market: Rallied strongly on large-ticket buying, driving yields lower. Heavy activity was concentrated on the 15.10.30 maturity (trading down to 11.45%-11.37%) and the 15.03.35 maturity (trading down to 11.85%-11.80%). • Money Market Liquidity: The net liquidity surplus stood at Rs. 89.83 Bn. A total of Rs. 99.43 Bn was deposited at the Central Bank’s Standing Deposit Facility Rate (SDFR) of 8.25%, while Rs. 9.60 Bn was withdrawn from the Standing Facility Rate (SLFR) of 9.25%. Overnight call money and repo weighted averages were 9.23% and 9.25% respectively. • Forex Market: The Sri Lankan Rupee (LKR) dipped marginally against the US Dollar (USD), with spot contracts closing at LKR 336.20/336.40 compared to the previous close of LKR 336.00/336.25. The total USD/LKR traded volume stood at US$ 98.45 Mn.
CSE Resumes Trading After Technical Glitch 📈
• Event: The Colombo Stock Exchange (CSE) experienced a delayed start to today's trading session following a technical issue with the Central Depository System (CDS). • Cause: During the scheduled deactivation of CDS accounts dormant for 15 years (effective June 30), a number of _active_ accounts were inadvertently suspended. • Resolution: The CSE extended the Opening Market Auction Call to facilitate the restoration of the incorrectly suspended accounts. • Status: Trading successfully commenced at 11:00 a.m. today, July 1, 2026.
📈 Asian Market Outlook: AI, Private Credit & Sovereign Risks
Institutional investors in key Asian hubs are signaling caution regarding structural risks as of June 2026. Key takeaways: • AI & Digital Infrastructure: Excessive capex and hyperscaler contract risks are driving global credit concerns. While efficiency gains are expected, risks include labour displacement and tax base erosion. • Private Credit: Intensifying asset competition and lack of transparency in fund structures are clouding leverage levels. While not yet a systemic threat, declining returns and limited disclosure on US middle-market borrowers remain critical focal points for investors. • Regional Sovereign Risks: • Indonesia: Investors are closely monitoring policy credibility, currency volatility, and the fiscal implications of the new Danantara sovereign wealth fund. • Japan: Remains resilient, though facing long-term pressure from ageing demographics and rising debt-servicing costs. • Korea: Tech-sector concentration is identified as a medium-term risk, though strong ICT performance continues to provide a buffer against energy-related headwinds. • Macro Sentiment: Regional contagion risk remains significantly lower than the 1997 financial crisis levels due to improved transparency and stronger banking systems. However, investors remain wary of potential volatility from supply-chain disruptions and geopolitical tensions in the Gulf. _Source: Fitch Ratings (Provisional Data)_
Technical Issue Delays Colombo Stock Exchange Trading 📈
• CSE Operations: The start of the trading session at the Colombo Stock Exchange (CSE) today, July 1, 2026, has been delayed. • Cause: The disruption is attributed to a technical glitch affecting the exchange's systems. • Status: The Opening Market Auction Call has been extended while technical teams work to resolve the failure. Further updates from the CSE are expected as they aim to restore normal trading operations.
📈 Asian Stocks Near Record Quarter; Strong Dollar Sinks Yen & Gold
Asian markets braced for the close of a historic quarter on Tuesday, marked by massive tech-driven gains, an aggressive U.S. dollar rally, and notable investor portfolio rebalancing. • Market Benchmarks: South Korea's KOSPI slipped 1% on Tuesday but is on track for a staggering 65% rise for Q2, more than doubling year-to-date. Taiwan's benchmark index is set to surge over 40% this quarter, driven by semiconductors and high-tech sectors. Japan's Nikkei remained steady, heading toward a record quarterly gain of over 36%. Hong Kong's Hang Seng bucked the regional trend, lagging with a 7.5% quarterly decline. • Currency & Commodities: The U.S. dollar index rose 1.3% this quarter as interest rate outlooks shifted from cuts to hikes, driven by resilient U.S. economic strength. The Japanese yen plunged to a four-decade low of 162.41 per dollar, prompting intervention warnings from authorities. Gold recorded its sharpest quarterly drop in over a decade due to the resurgent dollar. Global oil prices stabilized, with Brent crude tracking at pre-war levels of US$ 72.49 a barrel. • Investor Flows & Diversification: Strong tech performance triggered heavy profit-taking rather than new institutional inflows. A net US$ 17.3 Bn left South Korean equities this year as foreign investors rebalanced portfolios to mitigate heavy tech exposure, looking toward alternative themes like defense and renewables. Meanwhile, China's manufacturing expanded in June, supported by high-tech exports.
📉 Sri Lankan Rupee Depreciates 8.0% Against US Dollar in First Half of 2026
The Central Bank of Sri Lanka (CBSL) reports a notable shift in the local currency's value during the first six months of the year, driven by shifting foreign exchange dynamics. • Overall Performance: The Sri Lankan rupee depreciated by 8.0% against the US dollar during the period leading up to June 26, 2026. • Exchange Rate Data: According to the CBSL's daily exchange rate report on June 26, the buying rate for the US dollar stood at Rs. 332.22, while the selling rate was recorded at Rs. 341.88. • National Context: This depreciation directly impacts key import-reliant sectors and alters the competitive landscape for major export industries such as tea, apparel & textiles, and ICT/BPM, which traditionally balance national trade dynamics and drive employment. _Data based on the latest Weekly Economic Indicators report from the Central Bank of Sri Lanka._
📈 CSE Weekly Wrap: Market Edges Up 0.21% Amid Cautious Sentiment
• Key Indices: The Colombo Stock Exchange (CSE) closed the week in green despite cautious investor behavior. The All Share Price Index (ASPI) gained 0.21% (up 2.77 points yesterday to 22,409.81) and the S&P SL20 rose 0.51% (up 4.67 points yesterday to 6,247.42). • Market Turnover & Volume: Total turnover exceeded Rs. 1.9 Bn with nearly 64 million shares traded. Top individual turnover drivers included ComBank (COCR) at Rs. 197 Mn, Pekoe Trail Investments (PKME) at Rs. 172 Mn, and Seylan Developments (SIL) at Rs. 152 Mn. • Sector Performance: - Capital Goods: Emerged as the top turnover contributor, supported heavily by ACL Cables (closed at Rs. 100.25) and Hayleys (up 50 cents to Rs. 240), despite the overall sector index edging down 0.07%. - Diversified Financials: Was the second-highest contributor, with the sector index rising 0.57%, led by HNB Finance which appreciated 50 cents to Rs. 9.60. • Investor Activity: High net worth and institutional interest concentrated on ACL Cables, Hayleys, and HNB Finance. Retail interest focused on SMB Leasing, UB Finance, and Industrial Asphalts. • Foreign Inflows: Foreign investor participation remained at subdued levels, but foreigners finished the session as net buyers with a modest net inflow of Rs. 9.3 Mn.
📈 Asian Markets Retreat Following Tech Sell-off
Asian equities saw a sharp pullback on Friday as investors reacted to rising costs in the technology sector and significant profit-taking after a record-breaking quarter. • Market Performance: The MSCI Asia-Pacific index fell 3.8%, narrowing its quarterly gains to 21%. Japan’s Nikkei slumped 5%, while South Korea’s KOSPI tumbled 8.2%, triggering a temporary trading halt. • Tech Sector Woes: Apple shares slid 6.1%, wiping US$ 250 Bn off its market value following price hikes for iPads and MacBooks due to surging component costs. Microsoft also announced price increases for Xbox consoles. • Commodities: Brent crude dropped 1.9% to US$ 73.9 per barrel as supply concerns eased. In precious metals, gold saw a 12% monthly decline to US$ 3,992 per ounce, while silver fell 25%. • Economic Context: Rising input costs and heavy capital expenditure needs are forcing investors to become more selective regarding AI exposure. Meanwhile, the Japanese Yen remains under pressure, hovering near a 40-year low at 161.73 against the USD. Market sentiment remains cautious as quarter-end rebalancing flows combine with concerns over sustained consumer spending momentum in the U.S. economy.
📈 Bond Yields Consolidate Ahead of Rs. 60 Bn Auction
The secondary bond market held broadly steady yesterday as trading volume tapered off with market participants adopting a wait-and-see approach ahead of today's Treasury bond auction. • Bond Market Activity: • 2028 maturities (15.03.28 & 01.05.28) traded at 10.60%–10.63%. • 2029 maturity (15.12.29) traded at 10.95%. • 2030 maturity (01.08.30) fluctuated within 11.20%–11.22%. • 2033 & 2036 maturities traded at 11.60% and 11.98%–12.01% respectively. • Upcoming Rs. 60 Bn Auction: • Total of Rs. 60.00 Bn is offered across two tenors on June 26, with settlement on July 1, 2026. • Rs. 45.00 Bn offered for the 15 Oct 2030 maturity (11% coupon). • Rs. 15.00 Bn offered for the 15 Mar 2035 maturity (11.50% coupon). • _Context_: The previous auction on June 11 failed to raise its Rs. 150.00 Bn target, with all bids for the 2037 maturity rejected. • Money Market Liquidity: • Net liquidity surplus stood at Rs. 65.36 Bn. • Rs. 80.82 Bn was deposited at the Central Bank’s SDFR (8.25%), while Rs. 15.47 Bn was withdrawn via the SLFR (9.25%). • Weighted average overnight call money rate was 9.23%; repo rate was 9.24%. • Forex Market: • The USD/LKR spot rate appreciated slightly, closing at LKR 337.20/337.40 compared to the previous close of LKR 337.00/337.75. • Total traded volume for June 24 stood at US$ 102.95 Mn.
📈 CSE Ends 0.89% Higher Amid Renewed Buying Interest
The Colombo stock market closed in the green yesterday, driven by improved investor sentiment and strong retail participation. • Market Indices & Turnover: ASPI: Up 0.89% (+198.46 points) to 22,407.04. S&P SL20: Gained 0.99% (+61.10 points) to 6,242.75. Market Turnover: Reached Rs. 2.72 Bn involving 67.79 million shares traded. Foreign Trade: Remained net sellers with a net outflow of Rs. 50.3 Mn. • Sector & Stock Highlights: Materials: Led daily turnover with a 23% share; sector index gained 1.86%, driven by Samson International (+Rs. 13.50 to Rs. 490) and Haycarb (+Rs. 8.75 to Rs. 165.25). Capital Goods & Diversified Financials: Collectively contributed 32% to daily turnover. Capital Goods index increased by 1.74%. Top ASPI Contributors: DIAL, JKH, HAYL, MELS, and DIPD. • Investor Activity: High net worth (HNW) and institutional participation was noted in Commercial Bank (+50 cents to Rs. 209), Singer Sri Lanka, and Hatton National Bank (non-voting). High retail interest was observed in SMB Leasing, Industrial Asphalts, and Ceylon Land & Equity. Mixed interest was seen in Commercial Credit & Finance (-25 cents to Rs. 119.75) and Digital Mobility Solutions Lanka (+Rs. 3.75 to Rs. 173.75).
📈 Asian Markets Surge on Micron Earnings; Oil Erases War Premium
• Market Sentiment: Asian equities rallied sharply as strong earnings and forecasts from Micron and Qualcomm eased recent valuation concerns over the global AI sector. • Regional Indices: Japan's Nikkei surged over 4%, South Korea's KOSPI gained 5.5% (bringing YTD gains to 112%), and Taiwan stocks rose 0.9%. MSCI's Asia-Pacific index outside Japan increased by 1.6%. US futures also rose, led by Nasdaq futures up 1.8%. • Corporate Highlights: Micron reported $22 Bn in memory chip commitments from customers, while Qualcomm expects $15 Bn in data center sales by 2029. South Korea's SK Hynix plans to raise up to $29.52 Bn via a secondary Nasdaq listing. • Energy & Commodities: Brent crude fell 1.6% to $72.53/barrel, erasing all war-related gains as tankers exited the Strait of Hormuz following an initial accord ending the US-Israeli war with Iran. Spot gold dropped below $4,000/ounce for the first time in 2026, fetching $3,990 due to a stronger US dollar. • Forex & Inflation: The US dollar index hit 101.6 ahead of May PCE inflation data (expected at 4.1% YoY headline). Rising US rate hike expectations pushed the Japanese yen to 161.73 per dollar, nearing its lowest level since 1986 and raising prospects of Tokyo's intervention. _Note: Summarized based on provisional global market data as of June 25, 2026._
📈 Global Oil Prices Tumble Towards Pre-War Levels as Strait of Hormuz Reopens
Oil prices extended their sharp decline on Thursday, hitting their lowest levels since late February. The rapid drop comes as Middle Eastern supply returns much faster than anticipated following an initial accord to end the U.S.-Israeli war with Iran. • Market Impact & Prices: Brent crude futures for August fell by 1.65% to US$ 72.52 a barrel, while U.S. West Texas Intermediate (WTI) dropped 1.45% to US$ 69.32 a barrel. August Brent is trading lower than September, signaling ample short-term supply. • Supply Restoration: The Strait of Hormuz is rapidly normalizing, with at least 20 million barrels exiting the strait in a 24-hour window. Demining operations are underway to reach full normalcy within weeks. • Sanctions & Logistics: Iran is set to boost sales following a temporary reprieve from U.S. sanctions. Additionally, Oman has opened temporary routes to ease oil tanker departures. • Future Forecast: Analysts expect prices to normalize quickly. Brent is forecast to average US$ 67 per barrel and WTI at US$ 62 per barrel in Q3, a steep drop from Q2 averages of US$ 94 and US$ 87 respectively. _Context for Sri Lanka_: As a net oil-importing nation, a sustained drop in global crude prices toward the US$ 60–70 range will significantly ease pressure on Sri Lanka's foreign exchange reserves, reduce the national import bill, and help stabilize domestic energy and manufacturing costs.
📈 T-Bill Rates Edge Up Across the Board; All Bills Sold
• Auction Overview: At the weekly Treasury Bill auction, yields increased across all maturities, reversing part of the decline from the previous auction. The full Rs. 70 Bn offered was successfully raised during the competitive bidding phase, with total bids reaching 1.86 times the offered volume. • Yield Breakdown: • 91-day Bill: Witnessed the sharpest increase, up 12 basis points to 10.14%. • 182-day Bill: Edged up by 5 basis points to 10.21%. • 364-day Bill: Marginally increased by 1 basis point to 10.17%. • Secondary Bond & Money Market: Bond rates initially dropped on strong buying interest before closing marginally higher due to profit-taking. Healthy transaction volumes were recorded. Net money market liquidity surplus stood at Rs. 61.04 Bn. • Forex Market: The USD/LKR spot contract closed at LKR 337.00/337.75, a depreciation for the Rupee against the US Dollar compared to the previous day's close of LKR 335.00/335.50. The total traded volume stood at US$ 33.80 Mn (as of June 23).
📊 CSE Edges Down 0.22% Amid Weak Investor Sentiment and Selling Pressure
The Colombo stock market ended in the red yesterday due to cautious investor sentiment and selling pressure on select blue-chip stocks. • Overall Market Figures: The All Share Price Index (ASPI) fell 0.22% (down 47.91 points) to close at 22,208.58, with 140 counters closing in red against 76 in green. The active S&P SL20 also dropped 0.19% (down 12 points) to 6,181.65. • Turnover & Trading: Market turnover remained subdued at nearly Rs. 1.2 Bn, with over 48.4 million shares traded. Both high-net-worth and retail participation stayed at low levels. • Foreign Activity: Foreign investors were net sellers, resulting in a net outflow of Rs. 130.6 million. • Sector Breakdowns: The capital goods sector led daily turnover with a 16% share (Aitken Spence gained Rs. 1.50 to Rs. 158.25), followed closely by telecommunications and materials, which collectively contributed 32%. • Top Influencers: The main negative drivers for the ASPI were SAMP, JKH, LOLC, GRAN, and RICH. Dialog Axiata declined 0.53% to Rs. 45.60, while Bogala Graphite Lanka bucked the trend, gaining Rs. 17.50 to close at Rs. 155.
📈 Global Tech Selloff Sparks Asian Market Volatility
Asian markets wobbled on Wednesday following a major overnight tech and semiconductor selloff on Wall Street, with analysts warning of increased market instability. • Market Performance: • MSCI Asia-Pacific (ex-Japan) dipped 0.02%. • Japan’s Nikkei swung wildly, dropping 0.8%. • South Korean shares rebounded 2.2% after a massive 10% plunge on Tuesday. • US Markets: Nasdaq tumbled 2.2%, S&P 500 fell 1.4%, and Dow dropped 0.09% amid AI spending worries and hawkish Fed speculation. • Currency & Commodities: • The US Dollar Index held near a one-year high at 101.43, keeping the Japanese Yen near 40-year lows (161.57 per dollar). Bank of Japan minutes revealed calls for more rate hikes after pushing interest rates to a 31-year high of 1.00%. • Oil prices hovered near 4-month lows as stranded tankers prepared to move post-Iran war peace deal, though terms remain uncertain. • Spot Gold dropped 0.48% to US$ 4,088.71 per ounce due to higher interest rate expectations. _Note: This international volatility and stronger US dollar could put pressure on emerging market currencies, potentially impacting import costs for commodity-reliant nations._
📈 CSE Edges Up Marginally Amid Subdued Investor Sentiment
The Colombo Stock Exchange closed slightly higher yesterday on mixed sentiment, with low participation from high-net-worth and retail investors. • Market Indices & Turnover: The ASPI ended up 0.01% (+2.97 points) at 22,256.49, while the S&P SL20 dipped 0.03% (-2.06 points) to 6,193.65. Total turnover crossed Rs. 1.56 Bn with over 65.1 Mn shares traded. Foreign investors recorded a net outflow of Rs. 225 Mn. • Sector Performance: • Capital Goods: Led daily turnover with a 27% share, driven by Hemas Holdings (top turnover contributor at Rs. 214 Mn, closing up at Rs. 32.50) and John Keells Holdings (closed flat at Rs. 20.20). The sector index gained 0.22%. • Banking & Diversified Financials: Collectively contributed 29% to turnover. The banking index rose 0.13%, supported by National Development Bank (turnover of Rs. 169 Mn, gaining Rs. 1.50 to close at Rs. 111.50). • Other Sectors: Buying interest was noted in defensive sectors like power & energy (Hayleys Fibre rose Rs. 9.75 to Rs. 160; Panasian Power fell 40 cents to Rs. 16) and property. • Investor Participation: Institutional and high-net-worth activity was concentrated in Hemas Holdings, NDB, and Pan Asia Banking Corporation, though overall high-net-worth and retail participation remained subdued. Top positive contributors to the ASPI included CTHR, LFIN, NDB, DIAL, and NHL.
📈 Bond Yields Mixed; Focus Shifts to Rs. 70 Bn T-Bill Auction
• Market Sentiment: The secondary bond market experienced mixed trends, with short-term yields edging marginally lower and medium-term yields ticking slightly upward. Activity was influenced by falling global Brent crude prices following a US 60-day license for Iranian oil and reports of unfreezing $ 12 billion in Iranian assets. Overall trading volume remained moderate. • Bond Yield Movements: • 01.05.28 & 15.10.28: Traded at 10.64%-10.60% and 10.655%-10.635% respectively. • 15.12.29: Traded at 10.90%. • 01.08.30: Downward movement to 11.20%-11.17%. • 01.11.33: Traded at 11.65%. • 15.06.34 & 15.06.35: Traded at 11.70% and 11.95%. • Treasury Bill Auction: A total of Rs. 70.00 Bn is on offer today (91-day: Rs. 35 Bn, 182-day: Rs. 25 Bn, 364-day: Rs. 10 Bn). At the previous week's auction, yields dropped for the first time in five weeks (91-day down 7 bps to 10.02%; 182-day down 11 bps to 10.16%; 364-day flat at 10.16%), correcting the T-Bill yield curve inversion. • Liquidity & Money Market: Interbank call money and repo rates averaged 9.21% and 9.24%. The net market liquidity surplus stood at Rs. 64.26 Bn, with Rs. 101.11 Bn deposited at the Central Bank's SDFR (8.25%) and Rs. 36.85 Bn utilized via the SLFR (9.25%). • Forex Market: The Sri Lankan Rupee dipped marginally against the US Dollar, closing at Rs. 335.00/335.50 on spot contracts compared to the previous close of Rs. 334.45/334.75. The total traded USD/LKR volume was US$ 57.25 Mn.
🛢️ Global Oil Prices Drop Over 1% Amid Strait of Hormuz Progress
Global oil prices fell by over 1% on Tuesday, extending Monday's 3% decline, driven by signs of diplomatic progress and reviving crude flows through the strategic Strait of Hormuz following U.S.-Iran peace talks. • Price Adjustments: Brent crude futures dropped 1.4% (down $1.09) to $76.81 a barrel, while U.S. West Texas Intermediate (WTI) fell 1.2% (down 87 cents) to $72.99 a barrel. • Supply & Shipping: Tanker traffic is picking up. Two crude tankers carrying nearly 2 million barrels sailed through the Strait of Hormuz on Monday after the U.S. granted Iran a 60-day sanctions waiver. • U.S. Inventories: Government data revealed that U.S. Strategic Petroleum Reserve (SPR) stocks fell to 331.2 million barrels last week—the lowest level since June 1983—following recent U.S.-Iran conflict disruptions. • Economic Context for Sri Lanka: While this specific text does not detail domestic impacts, a sustained drop in global oil benchmarks is typically a vital driver for lowering Sri Lanka's national import bill, easing foreign exchange pressure, and stabilizing local fuel pricing and production costs. _Note: Based on provisional market and ship-tracking data._
Secondary Bond Market Yields Steady as Rupee Dips Marginally 📉
• Bond Market: The secondary bond market started the week with yields holding broadly steady amid subdued activity and limited transaction volumes across the yield curve. Key trades included the 15.06.29 maturity at 10.92%, 2030 maturities (01.03.30 and 01.08.30) at 11.05% and 11.20%, and 2035 maturities trading between 11.85% and 11.90%. • Money Market: Net liquidity surplus was recorded at Rs. 44.16 Bn. Market participants deposited Rs. 88.56 Bn at the Central Bank’s SDFR (8.25%) and withdrew Rs. 44.40 Bn from the SLFR (9.25%). Weighted average rates for overnight call money and Repo stood at 9.21% and 9.24% respectively. • Forex Market: The Sri Lankan Rupee dipped marginally against the US Dollar. Spot contracts closed at Rs. 334.45/334.75, compared to the previous day's close of Rs. 333.85/334.25. The total traded volume for USD/LKR stood at US$ 23.25 Mn (as of 19 June 2026).
CSE Opens Week in Red Amid Mideast Concerns 📈
The Colombo Stock Market saw a subdued start to the week as investor caution grew over the stability of Middle East peace developments. • Market Performance: The ASPI declined 0.48% (107.79 points) to close at 22,253.52, while the S&P SL20 fell 0.32% to 6,195.71. • Trading Activity: Market turnover reached nearly Rs. 1.2 Bn with 44 million shares traded. 51 counters gained against 164 decliners. • Investor Sentiment: Foreign investors were net sellers with an outflow of Rs. 154.6 Mn. Participation from both HNW and retail investors remained low. • Sector Breakdown: The capital goods sector dominated trading with a 30% share of turnover, followed by the banking and insurance sectors, which combined for 29%. • Top Drags: Negative pressure on the ASPI was largely driven by JKH, SPEN, DFCC, COMB, and ACL. Analysts note that concerns regarding potential disruptions to global trade routes continue to weigh on local risk appetite.
📈 Asian Markets Rise on Iran Peace Progress
• Market Performance: Asian equities trended higher as US-Iran peace talks showed progress. Japan’s Nikkei rose 1.8%, South Korea’s market added 0.6%, and MSCI’s Asia-Pacific index gained 0.8%. • Commodities: _Brent crude_ futures eased 1.9% to US$ 79.01/bbl, down significantly from May’s US$ 126.41 peak. Gold rose 0.4% to US$ 4,178/oz. • Energy Logistics: The Strait of Hormuz remains a focal point; shipping activity saw fluctuations with 55 vessels recorded on Saturday compared to 32 the previous day. • Global Policy: Financial markets are pricing in a 75% chance of a US Federal Reserve rate hike by September. The US dollar remains strong, trading at 161.66 yen. • Economic Outlook: Analysts remain constructive on risk assets, highlighting Technology and Large Cap sectors. Market attention now shifts to the upcoming US core inflation data (forecast at 3.4%) and central bank communications.
📈 CSE Announces S&P SL20 Mid-Year Index Rebalancing
The Colombo Stock Exchange has updated the constituents of the S&P SL20 index, effective 22 June 2026, following the mid-year review by S&P Dow Jones Indices. • New Additions: ACL Cables PLC CIC Holdings PLC Commercial Bank of Ceylon PLC (Voting Shares) • Exclusions: LB Finance PLC People’s Leasing and Finance PLC • Index Context: The S&P SL20 represents the 20 largest, most liquid, and financially viable companies on the CSE. Inclusion criteria require a minimum float-adjusted market capitalization of Rs. 500 million, specific liquidity thresholds, and positive net income over the preceding 12 months. • Current Composition: The updated index includes a mix of key sectors: Banking & Finance: Includes major entities like HNB, Sampath Bank, and NDB. Diversified Holdings: Features giants such as John Keells Holdings, Hayleys, and Melstacorp. Industrial & Consumer: Includes Access Engineering, Dialog Axiata, and Singer Sri Lanka among others. This rebalancing ensures the index continues to reflect the performance of leading blue-chip companies driving the local market.
Bond Market Bull Run: Rates Nosedive on Fiscal Surplus & Global Cues 📈
Sri Lanka’s secondary bond market recorded a strong rally last week, driven by a global decline in crude oil prices and robust domestic fiscal consolidation. • Macroeconomic Drivers: Domestically, investor confidence was heavily boosted by a Government budget surplus of Rs. 105 Bn during January–April 2026, marking a significant turnaround from the Rs. 261.6 Bn deficit recorded in the same period of 2025. • Treasury Yields & Auction: Aggressive buying pushed yields sharply lower across the curve. At the weekly auction, Treasury Bill rates dropped for the first time in 5 weeks, correcting the yield curve inversion. - 91-day T-Bill: Decreased by 7 bps to 10.02% - 182-day T-Bill: Decreased by 11 bps to 10.16% - 364-day T-Bill: Unchanged at 10.16% - The auction fully raised the offered Rs. 70 Bn, with bids oversubscribed by 1.85 times. • Market Segments: - Secondary Bonds: 2026 maturities hit lows of 10.05%, 2028 spaces fell from 11.00% to lows of 10.60%, while longer-end 2035 maturities fell to 11.75%. - Foreign Holdings: Increased marginally by Rs. 2 Mn to a total of Rs. 121.35 Bn for the week ended June 18. - Money Market: Total outstanding liquidity surplus fell to Rs. 31.25 Bn (from Rs. 62.57 Bn). Call Money and Repo rates closed at 9.22% and 9.24%. • Forex & Volumes: The USD/LKR spot contract appreciated, closing stronger at Rs. 333.85/334.25 compared to the previous week's close of Rs. 335.50/336.00. The daily average USD/LKR traded volume stood at US$ 86.00 Mn for the first four trading days.
💵 US Dollar Cools Near 13-Month High Ahead of Key US Inflation Data
The US Dollar Index (DXY) hovered near 100.70 after tapping a 13-month peak of 101.13, following the Federal Reserve’s decision under new Chair Kevin Warsh to hold interest rates at 3.50%–3.75%. Global markets now await US PCE inflation data, which could reshape central bank outlooks and impact key import/export dynamics relevant to Sri Lanka. • Major Currency Shifts: • EUR/USD slid over 0.80% to 1.1480 on a dominant Greenback and brewing Eurozone manufacturing anxieties. • GBP/USD slumped to 1.3230 after the Bank of England held rates at 3.75%, though two policymakers voted for a hike. • USD/JPY remains volatile near intervention thresholds at 161.30, balanced between Fed caution and the Bank of Japan's rate hike to 1.00%. • AUD/USD dropped toward 0.7020 ahead of Australia’s domestic CPI and labor data. • Global Commodities & Energy: • Gold (XAU/USD) faced headwinds, struggling near $4,155/oz, though cushioned by ongoing Middle East geopolitical uncertainty. • WTI Crude Oil fell for a second week to $76.50/bbl, pressured by a US-Iran peace deal. Lower global energy prices offer a potential cushion against imported inflation for oil-dependent emerging economies like Sri Lanka.
📈 Weekly Gain for CSE Despite A Red Friday
The Colombo Stock Exchange (CSE) closed the week on a negative note on Friday, breaking a two-session positive run, but still secured overall gains for the week. • Overall Weekly Market Figures All Share Price Index (ASPI) rose by 3.35% over the week to close at 22,361.31. S&P SL20 index gained 3.12% during the week to finish at 6,215.30. • Daily Performance & Turnovers On Friday, the ASPI fell by 0.33% (-74.83 points) and the S&P SL20 dropped 0.18% (-11.48 points) as losers (139) outnumbered gainers (70). Daily market turnover reached nearly Rs. 1.9 Bn with over 75.7 million shares traded. Foreign investors recorded a net outflow of Rs. 379.5 Mn. • Sector & Stock Breakdowns The capital goods sector dominated daily turnover with a 24% share, while the banking and diversified financials sectors collectively contributed 33%. Major index drags included SAMP, HNB, RIL, JKH, and CINS. Positive contributors for the day included CTHR, MELS, LION, and BIL. • Market Sentiment High-net-worth (HNW) and retail investor participation remained subdued due to weakened investor confidence.
📈 Rupee Appreciates Against US Dollar
The Sri Lankan Rupee (LKR) strengthened against the US Dollar (USD) during the week ending June 19, 2026, according to official data from the Central Bank of Sri Lanka (CBSL). • Currency Performance: The average LKR/USD indicative rate fell to Rs. 333.78, reflecting a gain from Rs. 336.39 recorded a week earlier. • Economic Context: This week-on-week appreciation of approximately 0.78% impacts key national sectors like apparel & textiles and tea, directly influencing import costs and export competitiveness.
📊 CSE to Rebalance All Share Price Index (ASPI) for Q2 2026
• Market Effective Date: The Colombo Stock Exchange (CSE) quarterly rebalancing takes effect from the market opening on 22nd June 2026 (following the market close on 19th June 2026). • The Methodology: Since January 2022, the ASPI has operated on a float-adjusted market capitalization basis. This means index calculations strictly consider only the public holding portion of a listed company's total market capitalization. • Purpose of Rebalancing: Adjustments are executed periodically to reflect the updated public holding percentages reported by listed companies each quarter, ensuring the index accurately tracks available market liquidity. • Next Scheduled Review: The subsequent quarterly rebalancing exercise for Q3 2026 is slated to take effect after the market closes on 18th September 2026.
🛢️ Global Oil Prices Dip as Strait of Hormuz Reopens Post US-Iran Peace Pact
Market Movement: Global oil prices fell on Friday following an interim peace agreement between the US and Iran, triggering the reopening of the strategic Strait of Hormuz. Brent crude: Fell by 43 cents (0.54%) to $79.42 a barrel. WTI crude: Slipped 17 cents (0.22%) to $76.43 a barrel (July contract). Supply Outlook: Multiple tankers—including three Saudi vessels carrying 6 million barrels—have commenced transit. Analysts project the deal could release over 85 million barrels of stranded Middle Eastern oil into global markets alongside the lifting of US sanctions on Iranian oil. Regional Updates: Kuwait Petroleum Corp lifted all wartime force majeure notices with immediate effect. Iraq confirmed its oilfields are ready to gradually restore previous production rates. Sri Lankan Context: Volatility in global oil prices directly impacts Sri Lanka's import bill and energy costs, heavily influencing domestic inflation and production costs for key export sectors like apparel & textiles and tea. Market Caution: Gains are capped by lingering geopolitical skepticism. Continued conflict between Israel and Hezbollah, alongside US VP JD Vance pulling out of scheduled talks in Switzerland, keeps analysts cautious regarding the long-term stability of the transit route.
📈 CoPF Chair Questions CPC’s Forex Strategy Amid Market Volatility Fears
• Key Concern: Parliament’s Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva questioned the Ceylon Petroleum Corporation (CPC) over its foreign exchange management, warning that large, unscheduled dollar purchases could disrupt market stability. This follows a reported US$ 46 Mn single-day purchase on 29 May. • Import Bill Surge: CPC's monthly fuel import bill ballooned from an average of ~US$ 100 Mn before April to over US$ 500 Mn, driven by a sudden escalation in global oil prices. • New Strategy: To mitigate market disruption, CPC officials stated they now follow a planned approach. Instead of concentrated purchases, the Corporation plans to spread future acquisitions over multiple days, targeting a daily purchase of US$ 11 Mn. • Procurement Structure: The CPC currently procures its foreign currency requirements through auctions across nine banks to support national fuel import requirements.
Peace Deal Cools Geopolitical Risks; Global Markets React Differently
• Overall Global Market Movement: Asian equities remained steady while global oil prices dipped following the signing of an interim peace deal between the U.S. and Iran. The agreement extends an existing ceasefire by 60 days to negotiate a final truce, reducing near-term geopolitical friction. • Oil & Commodity Impacts: Oil markets moved lower as supply anxieties eased. U.S. crude fell 1.25% to US$ 75.83 a barrel, and Brent crude dropped 1.4% to US$ 78.41 per barrel. Spot gold traded at US$ 4,309.75 per ounce. Lower global energy pricing typically helps buffer importing economies by curbing imported inflation. • Regional Equity & FX Trends: - Japan's Nikkei index surged past the 71,000 mark for the first time, driven by AI-related and semiconductor shares. - South Korean shares gained 0.9%, while MSCI’s broad Asia-Pacific index remained flat. - The U.S. dollar hit its highest level against the Japanese Yen since July 2024, trading at 160.65. • U.S. Market Retraction & Interest Rates: Despite positive geopolitical developments, major Wall Street indexes dropped over 1% overnight. Investors pivoted toward expectations of tighter monetary policy after Federal Reserve Chair Kevin Warsh signaled potential rate hikes to curb inflation, pushing the 10-year Treasury yield up to 4.471%.
📈 Sri Lanka Bond Market Yields Dip; Rs. 70 Bn T-Bill Auction in Focus
• Secondary Bond Market: The secondary market continued to rally yesterday, driving down yields on selected tenors while the rest consolidated. Market sentiment was boosted by positive developments in the US-Iran conflict and sliding Brent Crude prices, easing inflation and pressure on interest rates. Activity and transaction volumes remained robust. • Yield Movements by Maturity: • 15.12.26 traded at 10.25% • 15.02.28 dropped to 10.90% - 10.85% • 15.12.29 dropped to 11.28% - 11.20% • 2030 maturities (May & Aug) traded between 11.40% - 11.53% • 2032/2033 maturities fluctuated between 11.62% - 11.75% • 15.06.34 traded down to 11.90% - 11.80%, while 15.03.35 held at 12.00% • Treasury Bill Auction: Today's auction will offer Rs. 70 Bn (Rs. 35 Bn for 91-day, Rs. 25 Bn for 182-day, and Rs. 10 Bn for 364-day), matching a scheduled maturity of roughly Rs. 73 Bn. At last week's auction, yields rose for a fourth consecutive week (91-day up 25 bps to 10.09%; 182-day up 26 bps to 10.27%), leaving the 6-month yield above the 1-year rate (10.16%). Last week's auction raised just 51.25% of its Rs. 140 Bn target. • Money Market & Liquidity: Net liquidity surplus stood at Rs. 40.07 Bn. The weighted average call money rate was 9.21%, and the REPO rate was 9.24%. Commercial banks deposited Rs. 93.20 Bn at the Central Bank's 8.25% SDFR and withdrew Rs. 53.14 Bn from the 9.25% SLFR. • Forex Market: The USD/LKR spot contracts closed weaker at Rs. 334.75/335.50 against the previous close of Rs. 333.00/334.50. Total traded volume stood at US$ 73.85 Mn.
📉 CSE Loses Steam: Market Ends Flat After Early Rally
The Colombo Stock Exchange (_CSE_) closed flat on Tuesday, failing to sustain an early session rally that saw the index peak at 22,563.09 points amid easing geopolitical tensions and declining oil prices. Later profit-booking wiped out the early gains. • Market Indices: The All Share Price Index (ASPI) edged down 0.02% (3.36 points) to close at 22,377.29. Conversely, the active S&P SL20 index ticked up 0.03% (1.79 points) to finish at 6,221.32. Market breath was neutral with 117 gainers against 113 decliners. • Turnover & Volume: Daily market turnover stood at over Rs. 3.85 Bn, with nearly 152.6 million shares changing hands. High-net-worth and retail investor participation remained at average levels. • Sector Performance: The materials sector dominated market activity, accounting for 40% of the daily turnover. The capital goods and banking sectors collectively contributed another 20%. • Top Drivers & Laggards: Key positive contributors to the index included JKH, HAYL, DOCK, BREW, and BIL. Meanwhile, the index was dragged down by CARG, CINS, SAMP, NDB, and CFIN. • Foreign Interest: Foreign institutional and retail investors remained net buyers, recording a net foreign inflow of Rs. 427.1 Mn for the session.
📈 Secondary Bond Market Rallies on Peace Deal Optimism & Fiscal Surplus
Sri Lanka's secondary bond market began the week with strong bullish momentum, driven by easing external pressures and excellent domestic fiscal performance. Market Drivers • Global Easing: Optimism followed a US-Iran peace agreement to end the Middle East conflict and reopen the Strait of Hormuz, triggering a sharp decline in Brent crude oil prices and lowering inflation worries. • Fiscal Surplus: The Ministry of Finance reported a budget surplus of Rs. 105 Bn for Jan-Apr 2026, a massive turnaround from the Rs. 261.6 Bn deficit in the same period of 2025. Yield Curve Declines • Aggressive buying interest drove yields down sharply across maturities: • 2028 Tenors: 15.02.28 down to 10.95%-10.90%; 01.07.28 within 11.00%-10.90%. • 2030 Tenors: Rallied strongly; 15.05.30 dropped to 11.65%-11.40%, and 01.08.30 fell to 11.75%-11.40%. • Long-Term Tenors: 15.01.33 fell to 12.00%-11.65%; 15.03.35 traded down to 12.25%-12.00%. Liquidity & Forex • Money Market: Net liquidity surplus stood at Rs. 39.36 Bn. Overnight call money and repo weighted average rates settled at 9.20% and 9.24% respectively. • Forex: The Sri Lankan Rupee strengthened, with the USD/LKR spot contract closing at Rs. 333.00/334.50 compared to the previous close of Rs. 335.50/336.00. Total traded volume was US$ 50.70 Mn.
Rupee Gains Ground as CBSL Tightens Export Conversion Rules 📈
• Overall Movement: The Sri Lankan rupee opened the week stronger against the US dollar in the spot market yesterday. The USD/LKR spot rate closed at Rs. 333.00/334.50, appreciating from Friday's close of Rs. 335.50/336.00. • Policy Impact: This upward momentum follows a sharp appreciation last Wednesday driven by a Central Bank of Sri Lanka (CBSL) policy change. The CBSL reduced the mandatory timeline for exporters to convert export proceeds into rupees from 90 days down to 30 days. • Weekly Trend: • Early Last Week: The currency initially faced pressure, weakening to Rs. 337.00/337.75 by Tuesday's close. • Post-Announcement: Following the CBSL directive, the rupee rallied strongly on Wednesday to hit Rs. 332.25/333.00 before stabilizing at its current stronger position.
📈 CSE Surges: ASPI Registers Third Highest Single-Day Gain
The Colombo stock market opened the week with a powerful rally driven by global optimism following a confirmed US-Iran peace agreement. • Market Indices & Turnover: The All Share Price Index (ASPI) jumped 3.43% (+743.22 points) to close at 22,380.65, marking its third-highest single-day gain. The S&P SL20 index rose 3.19% to 6,219.53. Daily turnover crossed Rs. 4.00 Bn with 205.6 Mn shares traded. Foreign investors recorded a net inflow of Rs. 21.1 Mn. • Sector Performance: Capital Goods led market turnover with a 15.00% share, with the sector index gaining 3.44%. Banking and Health Care Equipment & Services collectively contributed 25.00% to turnover. The Banking index increased by 3.32%, supported by Commercial Bank which gained Rs. 7.00 to close at Rs. 209.25. • Investor & Stock Highlights: Retail investor participation was notably elevated, while high-net-worth (HNW) interest remained steady. Key positive index contributors included SAMP, COMB, JKH, MELS, and DIAL. Notable retail interest was seen in apparel & textiles via Hela Apparel Holdings, alongside Industrial Asphalts and SMB Leasing. Significant gains were also recorded by Prime Lands Residencies (+Rs. 6.80), Softlogic Capital (+Rs. 2.30), Amana Takaful (+Rs. 1.50), and Asiri Surgical Hospital (+Rs. 1.40).
📈 Dialog Axiata Breaks Rs. 400 Bn Market Cap Milestone
• Market Valuation Overview: Dialog Axiata PLC has officially surpassed a market valuation of Rs. 400 billion today (June 15), solidifying its position as the largest company listed on the Colombo Stock Exchange (CSE) by market capitalization. • Stock Performance: During early morning trading, the company's share price fluctuated between Rs. 44.90 and Rs. 46.40. This upward surge pushed its total market capitalization to a peak exceeding Rs. 420 billion during the session. • National Context: With this financial milestone, the telecommunications giant stands alone as the only listed company in Sri Lanka to claim a market capitalization of over Rs. 400 billion, reflecting its dominant scale in the local market.
📉 Global Oil Prices Tumble Following US-Iran Peace Deal
Global oil prices slid to their lowest levels since March after a surprise diplomatic breakthrough between the US and Iran to end their conflict and reopen the Strait of Hormuz, a critical chokepoint handling 20% of global oil and LNG supply. Key Figures & Market Reaction: • Brent crude futures dropped by $4.08 (4.7%) to US$ 83.25 a barrel. • US West Texas Intermediate (WTI) fell by $4.35 (5.1%) to US$ 80.53 a barrel. • The sharp decline unwinds the aggressive geopolitical risk premium built up during a three-month closure of the strait. The Agreement Details: • A memorandum of understanding is set to be signed in Switzerland this Friday, mediated by Pakistan. • The draft deal outlines the reopening of the Strait of Hormuz within 30 days under Iranian arrangements. • The US will lift its naval blockade of Iranian ports, and the E4 nations (UK, France, Germany, Italy) have expressed readiness to lift sanctions on Iran. • A broader, permanent agreement will be negotiated during an upcoming 60-day ceasefire period. Impact on Oil-Importing Economies: • Analysts note that oil flows only need to reach 60-70% of pre-war levels to return markets to an oversupply state. • While the drop offers immediate relief, experts warn that the economic strain previously endured by energy-importing nations—such as Sri Lanka, which relies heavily on imported fuel and energy for industrial production—cannot be reversed overnight due to structural infrastructure damage and months of elevated costs.
📈 Global Peace Deal Triggers Asian Market Surge & Oil Price Tumble
A tentative peace deal between the United States and Iran has sparked a massive wave of risk appetite across Asian markets and a sharp drop in energy prices, significantly easing global inflationary pressures. • Overall Impact: Global share markets rallied as the dollar slipped and oil prices plunged following the agreement, which includes reopening the critical Strait of Hormuz. • Energy & Commodity Markets: • Brent crude tumbled 4% to US$ 83.80 a barrel (down from its May peak of US$ 126.41). • U.S. crude slid 4.7% to US$ 80.89 a barrel. • Safe-haven gold climbed 1.9% to US$ 4,300 an ounce, supported by a drop in bond yields. • Regional Market Breakdowns: • Japan: The Nikkei climbed 3.0%, heavily boosted by the prospect of cheaper oil for the net energy-importing nation. • South Korea: The market surged by 4.3%. • Asia-Pacific: MSCI’s broadest index outside Japan rose 1.5%. • US Futures: Nasdaq futures jumped 1.5% and S&P 500 futures climbed 0.9%. • Central Bank Implications: The sustained fall in energy prices provides immense relief for global central banks meeting this week (including the US, UK, and Japan), easing immediate pressure to tighten monetary policy. The US Federal Reserve is widely expected to hold interest rates at 3.50%–3.75% this Wednesday. _Note: Market analysts note that while the deal boosts current risk appetite, uncertainty remains regarding shipping regulations and potential tolls managed by Iran and Oman through the strait._
📈 Sri Lankan Secondary Bond Market Ends Week on Bullish Note
Sri Lanka's secondary bond market wrapped up the week firmly lower on risk-on enthusiasm. Despite early-week volatility from Middle East tensions and heavy primary auctions, potential US-Iran peace talks dropped Brent crude to ~$86/bbl on Friday, triggering a sharp broad-based rally. • Secondary Bond Market Yield Dynamics: • 2027/2028 space: The 15.09.27 maturity hit an intraweek high of 11.00% before dropping to a low of 10.75%. The 15.02.28 maturity slid from 11.75% to 11.40%. • 2029/2030 space: The 15.09.29 maturity dropped sharply from 12.50% to 11.80%. Meanwhile, the 15.05.30 maturity recovered from 12.50% to trade down at 11.92%. • Long-end maturities: The 15.03.35 maturity declined from an intraweek high of 13.25% down to a low of 12.88%. • Primary Auctions & Macro Inflows: • T-Bill Auction: Yields rose for a 4th consecutive week to their highest since Sept 2024 (91-day at 10.09%, 182-day at 10.27%, 364-day at 10.16%). The auction raised only 51.25% (Rs. 71.7 Bn) of its Rs. 140 Bn target. • T-Bond Auction: Yields came in below market expectations despite mixed results; it raised 61.70% (Rs. 92.55 Bn) of the Rs. 150 Bn offered, rejecting all bids for the longest 2037 tenor. • Foreign Holdings: Reversing a 5-week streak of outflows, rupee-denominated government securities saw a marginal net inflow of Rs. 13 million, bringing total foreign holdings to Rs. 121.34 Bn. • Liquidity and Forex: • Market liquidity surplus dropped to Rs. 62.57 Bn (down from Rs. 115.04 Bn). • The USD/LKR spot contract closed stronger at Rs. 335.50/336.00 against the previous week's Rs. 335.75/336.25, aided mid-week by shortened exporter FX conversion timelines. Average daily traded volume stood at $ 58.88 million.
⚠️ Market Update: CSE Ends Week on a Positive Note
• Market Performance: The Colombo Stock Exchange (CSE) concluded the week's trading on a positive trajectory, reversing earlier trends to end the week on the up. • Data Availability: Detailed market statistics, including specific turnover volumes, Milanka/ASPI index movements, and exact year-on-year (YoY) percentage changes, are currently unavailable due to a provisional data extraction error (503 Service Unavailable).
🛢️ Global Oil Prices Drop as US-Iran Tensions Ease; OPEC Cuts 2026 Demand Forecast
• Market Reaction: Brent futures fell 2% (down US$ 1.83) to US$ 88.55 a barrel, while WTI crude dropped 1.8% (down US$ 1.60) to US$ 86.11. The decline extends previous losses after US President Donald Trump cancelled planned military strikes on Iran, softening fears of immediate escalation. • Geopolitical Context: A potential peace deal to reopen the Strait of Hormuz—which carries 20% of global oil and liquefied natural gas shipments—could be signed as early as this weekend, though Iran has not yet approved the text. Analysts note the situation remains fragile, warning that if oil flows do not resume by late July, seasonal demand could push prices toward US$ 120-130 per barrel. • Global Demand Forecast: OPEC lowered its 2026 world oil demand growth forecast for the second consecutive time, cutting it to 970,000 barrels per day (bpd) from 1.17 million bpd. However, it raised its 2027 demand growth forecast by 190,000 bpd to 1.73 million bpd, anticipating a later consumption rebound. • Implications for Sri Lanka: While not explicitly mentioned in the raw data, a downward correction in global oil prices typically eases import bill pressures on Sri Lanka's energy sector and reduces manufacturing costs for key export industries like apparel & textiles.
📈 Rs. 150 B Treasury Bond Auction Delivers Mixed Outcome Amid Global Tensions
Sri Lanka's latest Treasury bond auction yielded mixed results yesterday, failing to raise the total offered amount across both phases, with all bids for the longest maturity rejected. Despite global pressures like Middle Eastern tensions and volatile crude oil prices fueling a bearish bias, weighted average yields finished below market expectations. • Auction Performance & Yields: • Total bids received to accepted ratio stood at 1.97 times. • 15.05.30 Maturity (Short Tenor): Issued at a weighted average yield of 11.65%, lower than the pre-auction market trades of 12.50%. It failed to meet its full funding target. • 15.12.32 Maturity: Issued at a weighted average yield of 12.69%, also failing to raise its offered amount. • 01.07.37 Maturity (Long Tenor): All bids were completely rejected. • Secondary Bond Market: • Yields initially spiked on fears of escalating US-Iran tensions and rising oil prices. • Rates eased post-auction as two-way quotes dropped, with the 01.08.30 maturity trading down to 12.20%. Transaction volumes were supported by major block trades. • Money Market & Liquidity: • Net liquidity surplus stood at Rs. 66.62 Bn. • Rs. 92.62 Bn was deposited at the Central Bank's Standing Deposit Facility Rate (SDFR) of 8.25%, while Rs. 26.00 Bn was withdrawn from the Standing Lending Facility Rate (SLFR) of 9.25%. • Overnight call money and repo weighted average rates hit 9.19% and 9.24% respectively. • Forex Market: • The USD/LKR spot contract weakened, closing at Rs. 335.00/337.50 compared to the previous close of Rs. 332.25/333.00. • Total traded volume for June 10, 2026, was US$ 85.67 Mn.
🛢️ Global Oil Crisis: Strait of Hormuz Closes, Brent Hits $95 Amid US-Iran Escalation
The U.S.-Iran conflict has intensified sharply, triggering a major surge in global energy markets after Iran announced the immediate closure of the Strait of Hormuz to all vessels. • Market Impact & Oil Prices: Brent crude futures breached $95 per barrel during Thursday’s session, while WTI futures climbed over 2% intraday to cross $92. • Strait of Hormuz Blockade: Iranian officials stated any ship attempting to transit the vital maritime chokepoint will be attacked. The escalation follows a U.S. military strike on June 9 and subsequent Iranian retaliation on U.S. bases. • Inventory Collapse: The U.S. EIA forecasts that if traffic does not normalize before early 2027, OECD oil inventories will plunge below 2.3 Bn barrels by December 2026—the lowest since records began in 2003, covering just 50 days of global demand. • JPMorgan Price Outlook: Global inventories are expected to enter a "stress zone" by late June. JPMorgan forecasts Brent to average $100 per barrel if the strait reopens this month. However, every additional month of blockade in Q3 will add ~$5 to the average price, skyrocketing to an additional ~$15 per month if the blockade extends into Q4. _Context for Sri Lanka_: As an oil-importing nation, a prolonged blockade and sustained prices above $100/bbl pose significant risks to Sri Lanka's import bill, foreign reserves, and domestic inflation.
📈 T-Bill Rates Rise at Slower Pace; Rupee Appreciates on New FX Rules
• Treasury Bill Auction: Yields rose for the 4th consecutive week, hitting their highest levels since late-September 2024, though the upward pace moderated. The 6-month rate notably surpassed the 1-year rate. • Yield Breakdown: - 91-day: Up 25 bps to 10.09% - 182-day: Up 26 bps to 10.27% - 364-day: Up 14 bps to 10.16% • Auction Subscription: The auction raised Rs. 71.74 Bn out of Rs. 140 Bn offered in the first phase (51.25% subscription rate), with the bulk raised from shorter 3-month tenors. Cumulative yield increases (167–202 bps) have significantly outpaced the recent 100 bps policy rate hike. • Secondary Bond Market: Rates held steady ahead of today's Rs. 150 Bn Treasury Bond auction. Trading volumes remained subdued due to geopolitical uncertainty and volatile crude oil prices. • Forex & Liquidity: The Sri Lankan Rupee appreciated sharply to Rs. 332.25/333 per USD (from Rs. 337/337.75) after the CBSL reduced the exporter FX conversion window to 30 days to bolster national reserves. Market liquidity recorded a net surplus of Rs. 57.38 Bn.
CSE Back in Red Amid Selling Pressure 📉
The Colombo Stock Exchange failed to sustain its previous rally as afternoon selling pressure reversed early morning gains. • Market Indices & Performance: The All Share Price Index (ASPI) dropped 0.40% (down 85.70 points) to close at 21,461.47. The active S&P SL20 index also declined by 0.25% (down 15.26 points) to 5,985.42. Decliners outnumbered gainers 120 to 92. • Turnover & Trading Activity: Market activity remained subdued with daily turnover failing to cross Rs. 1.7 Bn on a volume of over 69 million shares traded. Retail participation stayed at average levels. • Sector & Stock Highlights: - The capital goods sector led market turnover with a 28% share, driven by John Keells Holdings, which gained Rs. 0.10 to close at Rs. 19.80. - The materials sector followed as the second highest contributor, though its index dipped 0.25% despite Chevron Lubricants gaining Rs. 0.25 to close at Rs. 195.25. - The food, beverage, and tobacco sector also contributed to a combined 30% turnover alongside materials. - Major negative drags on the ASPI included CTHR, MELS, GREG, AEL, and CFIN. • Investor Sentiment: High net worth and institutional interest was concentrated in John Keells Holdings, Chevron Lubricants, and Janashakthi Limited. On the positive side, foreign investors remained net buyers, recording a net inflow of Rs. 55.9 Mn.
📈 Govt Raises Only Half of T-Bill Target as Yields Climb
• Auction Overview: The Public Debt Management Office raised Rs. 71,744 million in its latest Treasury Bill auction today, securing just 51.2% of its Rs. 140,000 million target. This shortfall occurred despite strong market interest, with total bids reaching Rs. 201,006 million. • Yield Breakdown: Interest rates saw a notable increase across all three maturities compared to the previous auction: • 91-Day: Rose to 10.09% (up from 9.84%) • 182-Day: Rose to 10.27% (up from 10.01%) • 364-Day: Rose to 10.16% (up from 10.02%) • Maturity Allocation: The government heavily favored short-term borrowing, accepting Rs. 56,598 million for the 91-day maturity. Longer-term debt saw minimal acceptance, with only Rs. 8,924 million taken for 182-day bills and Rs. 6,222 million for 364-day bills.
📈 Rupee Strengthens Following CBSL's New Export Conversion Mandate
The Sri Lankan Rupee (LKR) appreciated significantly against the US Dollar today (June 10), driven by a strategic Central Bank of Sri Lanka (CBSL) policy shift to boost domestic liquidity. • Exchange Rate Movements: The US Dollar buying rate dropped from Rs. 332.38 to Rs. 324.66, while the selling rate fell from Rs. 342.08 to Rs. 335.39. • New Policy Directive: The appreciation follows an extraordinary gazette shortening the timeframe for exporters to convert foreign earnings into local currency. The previous three-month window has been reduced to just one month. • Key Mandate Details: All merchandise exporters (covering vital sectors like apparel & textiles and tea) must bring earnings into the country and convert the remaining balance—after authorized payments—into LKR on or before the 10th day of the following month.
📈 Global Markets Shaken by Middle East Escalation; Oil Surges Past $92
• Market Summary: Asian equities faced a broad sell-off on Wednesday following U.S. airstrikes against Iran. MSCI’s Asia-Pacific index dropped 0.6%, Japan's Nikkei fell 0.9%, and South Korea's KOSPI slumped 2%. U.S. futures and tech stocks also faced pressure amid AI valuation concerns and rising geopolitical risks. • Energy & Commodities: Crude oil prices climbed roughly 1% on fears of potential supply route disruptions. Brent crude futures rose 0.9% to US$ 92.29 a barrel, while U.S. WTI crude increased 0.8% to US$ 88.97 a barrel. • Inflation & Interest Rates: Investors await U.S. inflation data, with economists predicting a 4.2% YoY increase for May—the largest annual CPI rise since April 2023. Sticky inflation and a tight jobs market have led traders to fully price in a 25-basis-point Federal Reserve rate hike for December, reversing prior expectations of interest rate cuts. • Global & Regional Impact: High oil prices and a firm U.S. dollar are pressuring emerging markets, forcing Bank Indonesia into a surprise off-cycle interest rate hike to defend its currency. Meanwhile, Japan's wholesale inflation accelerated at its fastest pace in three years, paving the way for a Bank of Japan rate hike next week. _Note: This summary is based on provisional market data._
🛢️ Global Oil Prices Dip After Iran-Israel Pause Strikes
• Market Impact: Global oil prices fell on Tuesday, reversing most of the previous session's gains. Brent crude futures dropped by 91 cents (1%) to US$ 93.34 a barrel, while U.S. West Texas Intermediate (WTI) declined by US$ 1.13 (1.2%) to US$ 90.17 a barrel. • Geopolitical Drivers: The price drop follows announcements from both Iran and Israel that they have halted direct attacks on each other following an appeal from U.S. President Donald Trump. This paused a previous 5% price surge triggered by renewed Israeli strikes in Iran and Lebanon. • Market Sentiment & Risks: Analysts note that investors remain cautious as a lasting peace deal remains elusive. Tehran warned it would resume strikes if Israel continues attacking Hezbollah in Lebanon, while Israel vowed to respond with force to any new Iranian attacks. • Supply Disruptions: A key focus of ongoing Washington-Tehran peace talks is the reopening of the Strait of Hormuz, which previously handled about a fifth of global oil supplies before U.S. and Israeli airstrikes began in late February. Tensions remain high as U.S. forces recently disabled an unladen oil tanker in the Gulf of Oman for violating the ongoing blockade against Iran.
Steady Start for Secondary Bond Market Ahead of Rs. 150 Bn Auction 📈
• Market Sentiment: Rates held broadly steady as secondary bond market activity remained subdued. Investors adopted a wait-and-see approach due to Middle East geopolitical tensions and an action-packed week of back-to-back Treasury auctions. • Bond Yield Performance: • 15.09.27 maturity traded at 11.00% • 15.02.28 maturity traded at 11.75% • 15.06.29 maturity traded at 12.05% • 01.08.30 maturity fluctuated between 12.12% - 12.18% • 15.10.30 maturity traded at 12.30% • Upcoming T-Bond Auction: A massive Rs. 150 Bn Treasury Bond auction is scheduled for Thursday, 11 June, structured across three maturities: • 15 May 2030: Rs. 70 Bn offered (11.00% coupon) • 15 Dec 2032: Rs. 60 Bn offered (11.50% coupon) • 1 Jul 2037: Rs. 20 Bn offered (10.75% coupon) • _Settlement date_: 15 June 2026. • Money Market Liquidity: The market recorded a net liquidity surplus of Rs. 63.25 Bn. Market participants deposited Rs. 88.47 Bn at the Central Bank’s SDFR (8.25%) and withdrew Rs. 25.22 Bn from the SLFR (9.25%). Weighted average rates for overnight call money and Repo stood at 9.17% and 9.21% respectively. • Forex Market: The Sri Lankan Rupee weakened slightly against the US Dollar. Spot contracts closed at Rs. 337.00/337.35, compared to the previous day's close of Rs. 335.75/336.25. The total traded USD/LKR volume stood at US$ 78.50 Mn on 5 June 2026.
📉 CSE Opens Week in Red: ASPI Down 1.57% Amid Interest Rate Concerns
• Market Performance: The Colombo stock market started the week down, driven by rising interest rates and Middle East tensions. Only 23 stocks advanced while 227 declined. The All Share Price Index (ASPI) dropped 1.57% (-340.85 points) to 21,403.28, and the S&P SL20 fell 0.92% (-55.58 points) to 5,968.42. • Turnover & Trading: Daily market turnover reached over Rs. 2.6 Bn with 88.15 million shares traded. High Net Worth (HNW) and institutional participation remained strong, driven by crossings in John Keells Holdings (JKH). Retail trading remained at average levels. Foreign investors recorded a net outflow of Rs. 54.1 Mn. • Sector & Stock Breakdowns: • Capital Goods: Led market turnover with a 37% share, though the sector index lost 1.02%. JKH dipped 20 cents to Rs. 19.80, and ACL Cables dropped Rs. 2.20 to Rs. 94.60. • Banking: Second largest turnover contributor (collectively with Food & Beverage at 31%); the sector index fell 0.61%. Hatton National Bank rose 75 cents to Rs. 392, while Commercial Bank lost 50 cents to Rs. 201.75. • Top Drags: The primary negative contributors dragging down the ASPI were Melstacorp (MELS), Bukit Darah (BUKI), Hayleys (HAYL), Sampath Bank (SAMP), and LOLC. Retail interest was visible in apparel & textiles via Hela Apparel Holdings, alongside ACME Printing and Citrus Leisure.
📈 Global Tech & Geopolitical Fears Trigger Sharp Market Jitters
Global stock markets faced immense volatility on Monday as an aggressive sell-off in technology shares and renewed Middle East tensions rattled investor sentiment, though US markets managed a partial recovery. • Global Market Impact: • Asia: South Korea’s tech-heavy Kospi index plunged 8.3% after triggering a 20-minute trading halt (circuit breaker) to prevent panic trading. Chipmaker Samsung closed down 10%. Japan's Nikkei index shed 3.9%. • US & Europe: The Nasdaq managed a 1.2% recovery, while the S&P 500 rose 0.7% following sharp losses on Friday (Nasdaq’s biggest single-day drop in over a year at -4.0%). European markets traded lower but saw smaller losses, with the UK's FTSE 100 reversing early losses to close slightly higher. • Key Market Drivers: • AI Overvaluation: Investors are aggressively repositioning capital amid fears that heavy investments into artificial intelligence (ICT/BPM and tech adjacent infrastructure globally) may be overvalued. • Macroeconomic Shocks: A lower-than-expected US unemployment rate raised concerns that interest rates will stay high or climb further. • Energy & Inflation: A sudden rise in oil prices—fueled by fresh strikes exchanged between Iran and Israel following an April ceasefire—has renewed global inflation fears. _Note: Market sentiments remain highly volatile as traders monitor energy costs and tech sector valuations._
📉 Bearish Sentiment Grips Colombo Bourse as ASPI Slumps 1.57%
The Sri Lankan stock market experienced a notable downturn today (June 8), driven by escalating Middle East tensions and a broader regional sell-off following Israeli strikes on Iran. • Market Indices: The benchmark All Share Price Index (ASPI) shed 340.85 points to close at 21,403.28, down 1.57%. The S&P Sri Lanka 20 Index fell by 55.58 points (0.92%) to finish at 5,968.42. • Turnover & Participation: Despite the price drops, market activity remained robust with a daily turnover of Rs. 2.61 Bn. Local trading heavily dominated the floor, with domestic participants accounting for 96.0% of the total volume. • Foreign Fund Flows: Foreign participation was limited at 4.0%, resulting in a net foreign outflow of Rs. 54.12 Mn. Foreign sales reached Rs. 132.39 Mn against purchases of Rs. 78.28 Mn. • Global Context: The domestic slump mirrors a wider Asia-Pacific decline. Regional markets were rattled by the geopolitical escalation, which triggered a 3% surge in global oil prices and strengthened the US dollar.
📈 Global Oil Prices Surge Amid Heightened Mideast Tensions
Global oil markets saw a sharp increase on Monday following renewed conflict in the Middle East, sparking concerns over critical supply routes. • Price Movements: Brent crude futures rose by US$ 3.20 (+3.39%) to US$ 96.24 per barrel, while U.S. crude increased by US$ 2.87 (+3.17%) to US$ 93.41 per barrel. • Geopolitical Context: Market instability follows renewed Israeli strikes in Lebanon and reported explosions in Iran, fueling fears regarding the closure of the Strait of Hormuz—the transit route for one-fifth of global oil. • Supply Outlook: Despite OPEC+ agreeing to its fourth consecutive monthly output increase, analysts suggest the impact will be negligible as many members struggle to meet production targets due to the ongoing blockage and infrastructure vulnerabilities. • Economic Impact: Oil prices have climbed over 50% since March. As a net importer, sustained volatility in global energy costs poses a significant challenge for Sri Lanka’s transportation sector and general inflation control. Market participants remain focused on potential diplomatic interventions, though physical supply chain constraints continue to dominate market sentiment.
📈 CSE Records Fifth Consecutive Weekly Loss
The Colombo Stock Exchange (CSE) faced sustained selling pressure this week, ending on a downward trend. • Weekly Performance: The ASPI declined 2.54% and the S&P SL20 fell 2.2%. Total market capitalization dropped by Rs. 206 Bn. • Daily Trade: ASPI ended at 21,744.13 (-0.07%), while the S&P SL20 closed at 6,024.00 (-0.13%). • Turnover & Activity: Daily turnover reached Rs. 2.98 Bn with 112.6 million shares traded. High-net-worth participation remained robust. • Foreign Sentiment: Foreign investors acted as net buyers, recording an inflow of Rs. 113.2 million. • Sector Insights: • The capital goods sector dominated trading, contributing 42% to daily turnover. • The food, beverage & tobacco and insurance sectors collectively accounted for 23% of turnover. • Key Drags: Declines in COMB, HAYL, JKH, WIND, and SPEN weighed heavily on the indices. Market sentiment remains cautious as selling pressure continues to impact broader investor activity.
🛢️ Global Oil Prices Edge Down as Oman Clarifies Port Operations
• Market Updates: Global oil benchmarks dipped slightly on Friday after Oman confirmed that operations at its Mina al Fahal port are proceeding normally, dismissing earlier reports of a loading suspension due to an explosion. • Price Movements: Brent crude futures fell 24 cents (0.25%) to $94.79 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 56 cents (0.6%) to $92.48 a barrel. Despite daily losses, both contracts are on track for their first weekly gain in three weeks, with WTI up over 6% for the week. • Supply & Geopolitical Risks: Oman exports 800,000 to 900,000 barrels per day from the terminal. While daily prices eased, broader market risks remain skewed to the upside due to limited traffic in the vital Strait of Hormuz and ongoing Middle East tensions. Analysts warn that falling global oil inventories could trigger a price spike in Q3. • Global Demand Outlook: OPEC is maintaining its global oil demand growth forecast at 1.2 million barrels per day for the year. Meanwhile, weaker demand in China continues to cap major price surges, even as a U.S. naval blockade has cut Iranian oil exports to a six-year low. _Note: Sri Lanka is highly sensitive to global fuel price fluctuations as an oil-importing nation, making these global supply-chain stabilize-and-spike trends critical for national energy costs._
💸 Sri Lankan Rupee Continues Weekly Downward Trend against US Dollar
The Sri Lankan Rupee depreciated steadily against the US Dollar on every trading day this week, indicating renewed pressure on the currency after a brief period of stability following recent market volatility. • Weekly Movement: The USD/LKR spot rate closed yesterday at Rs. 336.75 (buying) and Rs. 337.50 (selling), compared to last week's close of Rs. 330.00/Rs. 332.00. • Net Depreciation: Over the four trading sessions, the rupee lost Rs. 6.75 against the dollar on the buying rate and Rs. 5.50 on the selling rate. • Daily Breakdown: - Monday: Closed at Rs. 331.50/Rs. 332.50 - Tuesday: Dropped further to Rs. 332.50/Rs. 333.50 - Wednesday: Weakened to Rs. 335.00/Rs. 337.00 - Thursday (Yesterday): Settled at Rs. 336.75/Rs. 337.50 The continuous daily decline highlights immediate challenges in foreign exchange market stabilization, affecting broader trade and economic sentiment. (Based on weekly market data)
📉 Secondary Bond Market Continues Bearish Trend Amid Yield Pressures
The Sri Lankan secondary bond market remained subdued yesterday as bearish sentiment pushed yields higher, driven by recent Treasury bill auction results. Market Summary • Yield Pressures: Investor caution persisted as the rise in Treasury bill yields following the recent 100 bps policy rate hike has significantly outpaced the monetary adjustment. Global energy market volatility and mixed geopolitical signals added further upward pressure. • Bond Trades: Activity was limited but supported by block trades. Key maturities traded as follows: • 15.02.28 & 15.03.28: 11.95% • 01.05.28 & 01.07.28: 11.90% - 12.00% • 01.08.30: 12.30% • 15.06.34: 13.15% • 2035 maturities (March/June): 13.25% - 13.30% • 15.08.36: 13.28% - 13.29% • Money Market Liquidity: The net liquidity surplus stood at Rs. 111.94 Bn. The Central Bank drained Rs. 25 Bn via overnight Repo and Rs. 10 Bn via short-term Repo auctions, both at a weighted average rate of 8.75%. The weighted average call money rate held above 9.00% for a sixth day at 9.16%, while the Repo rate was 9.20%. • Forex Performance: The USD/LKR spot contracts closed weaker at Rs. 336.75/337.50 compared to the previous close of Rs. 335.00/337.00. Total traded volume reached US$ 98 Mn (as of June 3).
📈 Global Oil Prices Fall as Israel-Lebanon Ceasefire Boosts Diplomacy
Oil prices dipped on Thursday following a ceasefire agreement between Israel and Lebanon, raising hopes for a broader resolution to the U.S.-Israeli war with Iran and a potential reopening of the critical Strait of Hormuz. • Market Impact: Brent futures fell by US$ 1.14 (1.2%) to US$ 96.67 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 90 cents (0.9%) to US$ 95.12. This reversed a 2% surge on Wednesday triggered by regional hostilities. • Geopolitical Developments: The Lebanon-Israel truce, set to take effect within 24 hours of final approval, marks a potential breakthrough as Iran conditions broader agreements on halting aggression toward Hezbollah. Concurrently, the U.S. House approved a resolution to block the continued war against Iran, though it faces a likely presidential veto. • Supply & Demand Friction: - U.S. crude stockpiles saw a massive draw of 8 million barrels (reaching 433.7 million barrels for the week ended May 29), double the expected 4-million-barrel drop. - Russia officially acknowledged a decline in its oil production since the start of the year due to unplanned refinery maintenance. - Price losses were capped as analysts note the primary trend remains upside while physical flows stay restricted. • Impact on Key Buyers: Sluggish demand from China—a major market for emerging economies—has forced traders to offer discounts on Iranian oil for the first time since April and lower premiums on Russian crude to entice buyers.
CSE Ends Down 0.75%, Extending Losses into Third Session 📉
The Colombo stock market faced sharp declines yesterday, continuing its bearish streak for a third consecutive day. Investor sentiment remained subdued due to ongoing selling pressure, rising interest rates, and surging global oil prices. • Market Indices & Sentiment ASPI: Down 0.75% (-166.55 points) to close at 22,011.10 S&P SL20: Down 0.54% (-32.83 points) to close at 6,097.83 Market Breadth: Heavily bearish with 185 decliners against only 47 gainers. High-net-worth (HNW) and retail participation remained average. • Turnover & Foreign Activity Total Turnover: Over Rs. 2.00 Bn with 109.8 Mn shares traded. Foreign Investors: Net sellers, recording a net outflow of Rs. 410.26 Mn. • Sector & Stock Highlights Top Sectors: The consumer durables & apparel sector led daily turnover with a 20% share. Capital goods and banking sectors collectively contributed 32%. Top Contributors to Turnover: Teejay Lanka (Rs. 360 Mn), John Keells Holdings (Rs. 143 Mn), and Commercial Bank (Rs. 96 Mn). Top Negative Contributors: DIAL, SAMP, BREW, CCS, and DOCK dragged down the ASPI.
📈 Global Oil Prices Surge Amid Middle East Hostilities
• Market Impact: Global oil benchmarks rose to a one-week high on Wednesday. Brent futures increased by 81 cents (0.8%) to US$ 96.81 a barrel, while U.S. WTI crude climbed 91 cents (1.0%) to US$ 94.67. • Geopolitical Risks: Tensions flared as Iran launched ballistic missiles at Kuwait and Bahrain. While the targets were missed, U.S. forces responded with strikes on Iran's Qeshm Island. Additionally, Iran has mined large portions of the vital Strait of Hormuz, keeping vessel transits significantly below pre-conflict levels. • Supply Constraints: Stalled U.S.-Iran diplomatic talks and IEA warnings of critical global stock shortages ahead of peak summer demand are driving up risk premiums. Furthermore, provisional API data indicates U.S. crude oil inventories fell by 6.8 million barrels for the week ended May 29, marking a seventh consecutive weekly decline. • Sri Lankan Context: As an import-dependent nation, rising global energy prices put direct upward pressure on Sri Lanka's import bill and domestic inflation, underscoring the ongoing need for energy diversification.
Bearish Sentiment Persists in Secondary Bond Market Ahead of Rs. 140 Bn T-Bill Auction 📈
• Market Overview: The secondary bond market remained under pressure with yields edging higher across the curve due to persistent selling interest, cautious investor participation, and rising global crude oil prices. • Bond Yield Movements: Selective trades saw the 01.07.28 maturity trade at 11.50%, the 15.12.29 at 12.00%, and the 01.03.30 at 12.10%. Longer-term 15.06.34 maturity yields pushed up to a range of 13.12%–13.13%. • Upcoming Treasury Bill Auction: A Rs. 140.00 Bn T-Bill auction is scheduled today (Rs. 65.00 Bn for 91-day, Rs. 55.00 Bn for 182-day, and Rs. 20.00 Bn for 364-day tenors). This total is below the estimated maturing volume of Rs. 168.80 Bn. • Previous Auction Recap: Last week’s auction was undersubscribed, raising only 68.26% (Rs. 95.56 Bn) of its target. Driven by a recent 100-basis point Monetary Policy rate hike, weighted averages spiked to their highest levels in 79 weeks: 91-day at 9.36% (+118 bps), 182-day at 9.68% (+143 bps), and 364-day at 9.83% (+134 bps). • Money Market Liquidity: The weighted average call money rate held above 9% for a fourth day at 9.14%, while the REPO rate stood at 9.19%. Market net liquidity surplus was recorded at Rs. 93.56 Bn, with CBSL draining Rs. 40.00 Bn via an overnight repo auction at 8.75%. • Forex Market: The USD/LKR spot contracts depreciated slightly to close at Rs. 332.50/333.50 against the previous day's Rs. 331.50/332.50. Total traded volume stood at US$ 70.93 Mn.
🐻 CSE Continues Negative Run Amidst Lacklustre Investor Activity
• Overall Market Figures: The Colombo Stock Exchange remained bearish for a second consecutive day. The benchmark ASPI closed 0.39% lower (down 87.39 points) at 22,177.65, while the active S&P SL20 fell 0.32% (down 19.55 points) to 6,130.65. Daily market turnover reached Rs. 2.01 Bn involving 82.01 million shares. Foreign investors remained net buyers. • Sector Breakdowns: • Capital Goods: Was the top contributor to market turnover, led by John Keells Holdings. The sector index edged down slightly by 0.03%, with John Keells Holdings closing flat at Rs. 20. • Materials: Was the second highest turnover contributor, with the sector index increasing by 0.58%. Within this sector, Chevron Lubricants rose by Rs. 0.50 to close at Rs. 199.50, and Haycarb appreciated by Rs. 7.75 to close at Rs. 155.75. • Investor Participation: High net worth and institutional activity focused on John Keells Holdings, Ceylon Cold Stores (which gained Rs. 3.50 to close at Rs. 139.75), and Chevron Lubricants. Mixed interest was seen in Haycarb, HNB Finance, and Colombo Dockyard. • Retail Interest: Retail investors focused on the apparel & textiles sector via Hela Apparel Holdings, alongside Waskaduwa Beach Resort and Industrial Asphalts. Pan Asia Banking Corporation also recorded a gain of one rupee to close at Rs. 55.40 among the top turnover contributors.
Sri Lankan Sapphire “Peacock of Ceylon” Fetches Over Rs. 500 M at Geneva Auction 📈
• Overall Sale: An exceptional, unheated Sri Lankan sapphire known as "The Peacock of Ceylon" has successfully fetched over Rs. 500 million (exceeding its initial estimates of up to CHF 1.5 million or US$ 1.2 million) at a high-profile international jewelry auction held in Geneva. • Gemstone Profile: The historic stone is a massive, unmounted cushion-shaped blue sapphire weighing 102.40 carats. Reports from leading gemological laboratories (including SSEF and Gübelin) confirmed its absolute Ceylon origin with zero indications of thermal or heat enhancement. • National Context & Market Significance: The historic sale underscores the premium global demand for high-quality, ethically-sourced gemstones and jewelry from Sri Lanka. The unheated peacock-blue hue represents the rarest and most desirable category of sapphires in the luxury market. This landmark transaction further reinforces the country's strategic standing as a premier global hub for elite collector-grade colored gemstones, bolstering non-traditional export visibility.
📈 CSE Opens Month in Red Amid Subdued Sentiment
The Colombo bourse commenced June on a negative note, weighed down by the recent Central Bank (CBSL) rate hike which kept investor confidence subdued. High-Net-Worth (HNW) and retail participation remained thin. • Overall Market Figures: • ASPI: Down 0.21% (-46 points) to close at 22,695. • S&P SL20: Down 0.15% (-9 points) to close at 6,150. • Market Turnover: Stood at over Rs. 1.7 Bn on 71.02 Mn shares traded. • Foreign Trade: Net foreign outflow of Rs. 7.8 Mn. • Sector & Industry Breakdown: • Capital Goods: Led daily turnover with a 17% share, though the sector index lost 0.71%. Aitken Spence drove the turnover but dipped 25 cents to Rs. 137. • Banking: Contributed significantly to turnover; the sector index decreased by 0.23%. Hatton National Bank bucked the trend, gaining Rs. 2 to close at Rs. 397.25. • Food, Beverage & Tobacco: Combined with Banking to contribute 32% of the daily market turnover. • Top Movers & Key Interest: • Top Drags: John Keells Holdings (JKH), Richard Pieris & Company (RICH), and LOLC Holdings were the top negative contributors to the ASPI. • Gains: Dialog Axiata rose Rs. 1.60 to Rs. 44.20, and RIL Property PLC gained Rs. 1.80 to Rs. 28. • Retail/Mixed Interest: Activity was noted in apparel & textiles via Hela Apparel Holdings, alongside HNB Finance and HVA Foods.
Global Oil Prices Surge as Middle East Conflict Escalates 📈
• Overall Price Impact: Crude oil prices climbed significantly in early Asian trading on Monday due to expanding military actions in Lebanon. West Texas Intermediate (WTI) rose by 2.43% to $89.88 per barrel, while Brent crude increased by 2.88% to trade at $93.33 per barrel. • Key Geopolitical Drivers: Over the weekend, Israeli troops expanded operations north of the Litani River and captured the strategic Beaufort Castle. This military escalation directly threatens the stability of U.S.-hosted peace talks in Washington and compounds existing market anxiety. • Supply Risks & The National Context: Upside risks for oil markets remain high following the previous closure of the Strait of Hormuz by Iran. For Sri Lanka's economy, prolonged high energy costs typically pressure foreign reserves and intensify domestic inflationary pressures across key export sectors like apparel & textiles and tea logistics. While President Trump noted a pending determination on an Iranian ceasefire framework, no deal has been signed. • Demand Indicators: The price surge occurred despite weekend data showing sluggish Chinese factory activity and deflationary pressures. While weaker demand from China—the world's second-largest economy—would normally depress prices, Middle East supply risks currently remain the dominant market driver. _(Based on provisional market data)_
📉 LKR Depreciates 5.4% YTD Amid Escalating External Sector Pressures
The Central Bank of Sri Lanka (CBSL) announced that the Sri Lankan Rupee (LKR) has experienced a year-to-date depreciation of 5.4% against the US Dollar as of late May 2026. • Key Driver: The CBSL attributes the currency decline to heightened external sector pressures following the escalation of the Middle East conflict since late February 2026. • Regional Context: This downward movement aligns with broader currency depreciation trends observed in peer economies across the region during the same period. • Exchange Rates: As of May 29, 2026, official daily exchange rates stood at a buying rate of Rs. 324.45 and a selling rate of Rs. 334.24 per US Dollar.
📈 Colombo Stock Exchange Ends Strong on High Turnover
The Colombo Stock Exchange closed positively today, May 29, 2026, driven by significant block trades. • Market Performance: The ASPI gained 111.57 points (+0.50%) to close at 22,310.80, while the S&P SL20 rose 27.81 points to 6,159.15. • Turnover Breakdown: Market turnover reached a robust Rs. 7.37 Bn, heavily supported by major crossings: • HNB Finance PLC: Rs. 3.52 Bn (approx. 400M shares at Rs. 8.80 each, following a stake sale by Prime Lands (Pvt) Ltd). • Softlogic Insurance PLC: Over Rs. 1 Bn in crossings. • Key Movers: Positive momentum was supported by major firms across the banking, telecommunications, and conglomerate sectors, including Commercial Bank, Dialog Axiata, Melstacorp, Access Engineering, and Hemas Holdings.
📈 Global Oil Prices Decline Amid Potential US-Iran Ceasefire
Oil futures slipped over 1% today, marking the steepest weekly decline since early April on reports of a potential US-Iran ceasefire. • Market Performance: Brent crude fell 1.1% to US$ 92.67/barrel, while US oil (WTI) dropped 1.4% to US$ 87.64/barrel. • Weekly Outlook: Brent plunged 10.5% this week, with WTI declining 9.2%. • Geopolitical Context: Potential reopening of the Strait of Hormuz—a conduit for 20% of global oil and LNG—is driving price volatility. • Economic Impact: Analysts suggest prices may trend toward the low US$ 80s if the ceasefire holds. While a deal could provide relief, experts note that upstream production and refinery recovery will be gradual due to infrastructure damage sustained during the three-month conflict. Note: Prices reflect market volatility based on pending official approvals for the ceasefire agreement.
📈 Rs. 240 Bn Treasury Bond Auction Fully Subscribed Amid Rate Hikes
• Auction Overview: The Central Bank of Sri Lanka fully raised the total offered Rs. 240.00 Bn during the first phase of competitive bidding. Despite global tensions and crude oil volatility causing a bearish bias, market demand remained strong, with the bids-received-to-accepted ratio reaching 1.84 times. • Yield Performance: Weighted average yield rates increased, moving in line with the recent 100 bps Monetary Policy rate hike. Maturity breakdowns are as follows: • 01.08.30 (Short tenor): 11.86% WAYR • 15.01.33 (Mid tenor): 12.32% WAYR • 15.03.35 (Long tenor): 12.93% WAYR _(Note: A 10% tap window remains open for all three tenors until 3:00 PM today)_ • Secondary Market & Liquidity: The secondary bond market saw robust post-auction transaction volumes as traders aggressively bought into the elevated yields. In the money market, net liquidity surplus stood at Rs. 126.70 Bn, with Rs. 140.98 Bn deposited at the 8.25% SDFR and Rs. 89.27 Bn withdrawn from the 9.25% SLFR. • Forex Market: The USD/LKR spot contracts closed lower at Rs. 328.50/332.00, compared to the previous day's close of Rs. 324.50/326.00. The total traded volume on May 26, 2026, stood at US$ 65.30 Mn.
🚨 Oil Prices Surge Over 3% Following US-Iran Escalation
Global oil benchmarks jumped significantly following a brief drop in the previous session, triggered by renewed military hostilities between the US and Iran. • Market Impact: Brent crude futures for July surged by US$ 3.51 (3.72%) to US$ 97.8 a barrel, while the more active August contract gained US$ 3.35 (3.63%) to reach US$ 95.6. US West Texas Intermediate (WTI) futures rose by US$ 3.31 (3.73%) to US$ 91.99. • Geopolitical Drivers: The surge follows a retaliatory strike by Iran's Revolutionary Guards on a US airbase. This came after a US military strike near Bandar Abbas airport targeting an Iranian military site deemed a threat to US forces and commercial shipping in the strategic Strait of Hormuz. • Supply Constraints: The escalation disrupts prior market optimism regarding a potential deal to reopen the Strait of Hormuz. Analysts note that global oil supply remains heavily constrained with unresolved geopolitical sticking points. • Inventory Data: Supporting the tight supply outlook, provisional American Petroleum Institute (API) data showed US crude oil stockpiles fell by 2.8 million barrels last week, marking their sixth consecutive week of declines. _Context for Sri Lanka:_ As a net oil-importing nation, sharp increases in global energy commodities typically exert pressure on Sri Lanka's foreign exchange reserves, import bills, and domestic retail fuel pricing structures.
💵 Sri Lankan Rupee Edges Lower Against US Dollar Amid Market Volatility
• Exchange Rate Movements: The Sri Lankan rupee depreciated against the US Dollar on Wednesday. The indicative telegraphic transfer LKR/USD buy/sell rate edged higher to Rs. 320.40/Rs. 330.81, compared to Rs. 318.32/Rs. 328.69 on Tuesday. However, the currency remains stronger than Monday's rates and last Thursday's peak of Rs. 342.63/Rs. 354.03. • Interbank Market: The buy/sell LKR/USD interbank spot contracts closed higher at Rs. 328.50/Rs. 332.00 yesterday, up from Tuesday’s Rs. 322.00/Rs. 325.00, but lower than last week's weakest level of Rs. 331/Rs. 348. • Central Bank Intervention: To calm a panicking market, the Central Bank of Sri Lanka (CBSL) utilized moral suasion rather than excessively selling down foreign reserves. The CBSL capped trades at Rs. 330 for certain banks and signaled potential new measures to compel exporters to convert dollar earnings sooner. • Economic Context: CBSL Governor Dr. Nandalal Weerasinghe stated the bank is prepared to use moral suasion to contain excessive exchange rate volatility driven by global supply disruptions from the Middle East war.
📈 Colombo Stocks Edge Up Despite Rate Hike Cautiousness
The Colombo stock market recovered to close in the green yesterday, showing resilience despite subdued investor sentiment following the Central Bank of Sri Lanka's (CBSL) recent 100-basis-point policy rate hike. • Market Performance & Figures: • ASPI rose by 0.11% (+24.09 points) to close at 22,199.23. • S&P SL20 gained 0.21% (+13.08 points) to end at 6,131.34. • Market turnover reached over Rs. 1.86 Bn with 61.8 Mn shares traded. • Market Price-to-Earnings (P/E) ratio stood at 11.43. • Sector & Stock Breakdowns: • Food, Beverage & Tobacco was the top turnover contributor at 19%. • Materials and Capital Goods jointly brought in 30% of turnover. • Key positive index drivers included DIAL, CCS, BREW, CARS, and NDB. • Crossings accounted for 14% of turnover, led by CICN (Rs. 153.8 Mn), LMF (Rs. 46 Mn), and JKH (Rs. 40.2 Mn). • Investor Activity: • Retail and high-net-worth investor participation remained below average. • Foreign investors recording a minor net inflow of Rs. 0.71 Mn. • Net foreign buying peaked in VLL (Rs. 75.4 Mn), while net foreign selling was highest in AAIC (Rs. 68.4 Mn).
📊 Global Markets Rise Amid US-Iran Truce Uncertainty & Central Bank Moves
• Market Movements: Asian shares broadly advanced, with MSCI’s Asia-Pacific index (ex-Japan) up 1.2%. Japan’s Nikkei surged 1.8% to hit a record high, tracking Wall Street's AI-driven optimism. • Energy & Commodities: Energy markets face vulnerability as Brent crude traded near US$ 100 per barrel (down 0.52% after a prior 4% surge) and U.S. crude sat at US$ 93.05 per barrel. Tensions remain high following ceasefire violation allegations. Spot gold ticked up 0.36% to US$ 4,522.14 an ounce, while copper rose 0.46% to US$ 13,686.50 per metric ton. • Currency & Central Banks: The U.S. dollar index held steady at 99.09. Central banks face inflation pressure from ongoing supply shocks; the Reserve Bank of New Zealand is expected to hold its key rate at 2.25%, while ECB members lean toward a June interest rate hike despite ongoing peace talks. • Crypto Updates: Bitcoin softened slightly by 0.18% to US$ 75,883.90, while Ether remained flat at US$ 2,075.39. _Note: Based on current global market data; direct impacts on Sri Lanka's import costs (especially oil) and broader ICT/BPM or export sentiment will depend on final U.S.-Iran negotiation outcomes._
📈 CSE Ends Lower Post-Policy Rate Hike & Middle East Tensions
The Colombo Stock Exchange (CSE) closed in the red yesterday amid heavy foreign selling. Investor sentiment was dampened by the Central Bank's recent 100bps overnight policy rate hike and escalating Middle East tensions following a US strike on Iranian missile facilities. • Market Indices: The All Share Price Index (ASPI) dropped 0.85% (-189.63 points) to close at 22,175.14, while the S&P SL20 fell 0.98% (-60.84 points) to 6,118.26. The decline was broad-based, with 176 counters closing lower against 53 gainers. • Turnover & Volume: Total market turnover stood at Rs. 4.93 Bn, with over 94.3 million shares traded. Subdued retail investor participation was observed. • Foreign & Institutional Activity: Foreign investors were heavy net sellers, resulting in a major net outflow of over Rs. 3.00 Bn. High-Net-Worth (HNW) participation was high, with crossings accounting for 66.4% of the total market turnover. • Sector Performance: The insurance sector dominated market activity, leading daily turnover with a massive 65% share. This was heavily driven by a single crossing in AAIC worth Rs. 3.10 Bn. The banking and diversified financials sectors collectively contributed 15% to the daily turnover. • Top Laggards: The top negative contributors dragging down the ASPI included major players in the banking and diversified conglomerates sectors, specifically SAMP, HAYL, JKH, HNB, and NDB.
📈 Global Energy: Brent Crude Rises 1.5% Amid US Strikes in Iran
Global oil markets remained highly volatile as targeted geopolitical escalations directly impact global energy supply chains—a critical factor for Sri Lanka's fuel import costs and macroeconomic stability. • Market Figures: Brent crude futures climbed 1.5% ($1.40) to US$ 97.56 a barrel in early Asian trade on Tuesday, recovering slightly from a 7% drop in the previous session. U.S. West Texas Intermediate (WTI) crude edged up to US$ 91.25 a barrel. • Geopolitical Drivers: The U.S. Central Command confirmed defensive military strikes on Iranian boats and missile launch sites in southern Iran following reported explosions near the shipping & logistics chokepoint of Bandar Abbas along the Strait of Hormuz. • Supply Chain Impact: Tehran’s blockade has choked off roughly 20% of global oil and gas flows over the last three months, driving global energy prices up by 50% or more. • Diplomatic Outlook: Despite the strikes, negotiators in Doha reported progress on a memorandum of understanding for a 60-day window to finalize a peace deal. The proposed agreement includes clearing mines from the strait within 30 days to restore free, safe navigation and halt transit fee collections. • Regional Shipments: Early signs of easing friction emerged as tracking data showed four stranded tankers—including three LNG vessels and an Iraqi crude supertanker—successfully departed the strait heading toward Pakistan, China, and India.
📈 Colombo Bourse Rallies as ASPI Climbs Over 400 Points (25 May 2026)
The Colombo Stock Exchange (CSE) witnessed a strong rally driven by broad-based buying interest and heavy domestic participation. • Market Indices & Capitalization Benchmark ASPI surged by 435.13 points (+1.98%) to close at 22,364.77. S&P SL20 Index gained 118.08 points (+1.95%) to settle at 6,179.10. Market capitalization rose to Rs. 8.11 trillion, up from Rs. 7.95 trillion in the previous session. • Turnover & Investor Participation Total market turnover stood at Rs. 2.42 billion with 106.1 million shares traded. Domestic investors dominated the session, recording Rs. 2.39 billion in purchases and Rs. 2.37 billion in sales. Foreign investors recorded a net outflow of Rs. 24.57 million (purchases of Rs. 27.09 million vs. sales of Rs. 51.67 million). • Sector & Stock Highlights Market breadth was strongly positive, with 137 companies gaining over 2%. The rally was heavily led by major blue-chip and banking sector counters. Top contributors to the ASPI gains included Dialog Axiata (+36.78 points), Commercial Bank of Ceylon (+17.50 points), John Keells Holdings (+16.04 points), Sampath Bank (+14.69 points), and Hemas Holdings (+13.97 points).
📉 Global Oil Prices Slip 6% Amid US-Iran Peace Optimism • Overall Impact: Global crude oil prices tumbled ~6% on Monday to hit two-week lows. This comes as a potential relief to energy-dependent economies like Sri Lanka, which have faced severe pressure on foreign reserves due to high import bills and West Asian geopolitical tensions.
• Price Breakdowns: • Brent crude futures dropped by US$ 5.85 (or 5.7%) to US$ 97.69 a barrel. • U.S. West Texas Intermediate (WTI) decreased by US$ 5.75 (or 6.0%) to US$ 90.85 a barrel. • Both contracts recorded their lowest levels since May 7. • Key Market Drivers: • Optimism grew after the US announced a "largely negotiated" understanding to reopen the crucial Strait of Hormuz, which previously handled 20% of global oil and LNG shipments. • Analysts remain cautious as the two sides remain at odds over critical blockades, and a return to normal flow could take months due to damaged infrastructure. • Supply Side Indicators: U.S. energy firms increased oil and gas rigs for the fifth consecutive week to 558 rigs (up by 7) to capitalize on recent high prices. However, the total count remains 1% lower YoY.
📈 CSE Opens Week in Green on Strong Sentiment and Appreciating LKR
The Colombo Stock Exchange (CSE) started the week with a broad-based rally, driven by a strengthening Rupee and positive global developments, including progressing US-Iran peace talks and easing oil prices. • Market Performance: The ASPI surged by 1.98% (+435.13 points) to close at 22,364.77, while the S&P SL20 rose 1.95% (+118.08 points) to 6,179.10. High-net-worth and retail participation remained somewhat subdued in a cautious market. • Turnover & Trading: Total market turnover crossed Rs. 2.4 Bn with 106.1 million shares traded. Foreign investors recorded a net outflow of Rs. 24.6 Mn. • Sector & Stock Highlights: Capital Goods led daily turnover with a 15% share, driven by Colombo Dockyard (+Rs. 5 to Rs. 137.50), with the sector index gaining 2.19%. Food, Beverage & Tobacco and Diversified Financials collectively contributed 28% to turnover. Ceylon Cold Stores gained 2.41% (+Rs. 5.25 to Rs. 130.25). Apparel & Textiles saw retail interest via Teejay Lanka, which closed up at Rs. 31.60. Top overall positive index contributors included DIAL (+Rs. 2.60 to Rs. 39.90), COMB, JKH, SAMP, and HHL.
📈 Secondary Bond Market Surges Ahead of Key Policy & Auction Decisions
The Sri Lankan secondary bond market kicked off the week with a bullish rally, driving yields down considerably on robust transaction volumes. Optimism was fueled by global oil prices dipping below $ 100 on potential US-Iran peace progress, alongside a further appreciation of the Sri Lankan rupee and easing global yields. • Market Movements & Yields: • Bond yields fell significantly, with the 01.07.28 maturity dropping from an intraday high of 10.18% to 10.00%. The 01.10.32 maturity declined sharply from 11.25% to 11.00% on sizeable volumes. • Short-term maturities like 15.09.27 traded at 9.60%, while long-term tenors like 15.08.36 held at 11.45%. • Upcoming Primary Debt Auctions: • Treasury Bill Auction: Rs. 140.00 Bn is on offer today across 91-day (Rs. 65 Bn), 182-day (Rs. 45 Bn), and 364-day (Rs. 30 Bn) tenors. This follows a previously undersubscribed auction that raised only 48.03% (Rs. 67.24 Bn) of its offer, where 91-day and 182-day weighted averages rose slightly to 8.18% and 8.25%. • Treasury Bond Auction: Rs. 240.00 Bn is scheduled for May 27 across three maturities: 2030 (Rs. 90 Bn), 2033 (Rs. 70 Bn), and 2035 (Rs. 80 Bn). • Liquidity & Forex Indicators: • Money market net liquidity surplus stood at Rs. 136.99 Bn. Overnight call money and repo weighted average rates settled at 7.94% and 8.00% respectively. • The spot USD/LKR rate appreciated sharply to close at Rs. 325.50/327.00, compared to the previous close of Rs. 329.00/335.00. Total traded volume reached US$ 92.62 Mn on May 22.
📈 Dialog Axiata Overtakes JKH as Most Valuable Listed Company on CSE
• Dialog Axiata PLC has regained the top spot as the most valuable listed company on the Colombo Stock Exchange (CSE) after 11 years, overtaking long-standing dominant blue-chip John Keells Holdings (JKH). • Overall Market Status: The total market capitalization of the CSE rose by 2.04% from Friday, reaching Rs. 8.11 Trillion. • Top 5 Market Capitalization Breakdown: Dialog Axiata: Rs. 367.1 Bn (4.51% of total market cap) John Keells Holdings (JKH): Rs. 359.4 Bn (4.42% of total market cap) Ceylon Tobacco Company: Rs. 341.9 Bn (4.20% of total market cap) Commercial Bank: Rs. 320.9 Bn (3.95% of total market cap) LOLC Holdings: Rs. 268.0 Bn (3.30% of total market cap) • Remaining Top 10 Leaderboard: Distilleries Company: Rs. 261.7 Bn (3.22%) Melstacorp: Rs. 218.2 Bn (2.68%) Hayleys: Rs. 189.4 Bn (2.33%) Hatton National Bank: Rs. 185.7 Bn (2.28%) Cargills Ceylon: Rs. 177.8 Bn (2.19%) • Historical Context: While JKH has maintained the most consistency and longevity at the top of the Sri Lankan equity market for roughly four decades, telecommunications giant Dialog previously challenged the top spot following its 2005 listing. Other sectors like global logistics (Expolanka in 2021-2022) and diversified conglomerates (LOLC and Hayleys) have also briefly shifted rankings during exceptional market cycles.
📈 Volatile Week Ends with Rupee Recovery and Rising Bond Yields
Sri Lanka’s secondary bond market ended on a positive note after a predominantly bearish week driven by global crude oil volatility and Middle East tensions, which prompted a defensive stance mirroring rising global yields. • Market Sentiment & Bonds: Yields rose for four consecutive sessions due to selling pressure but partially retraced on Friday due to a late buying surge and a sharp appreciation of the Sri Lankan rupee. Yield curves moved in an inverted U-pattern, closing the week notably higher. • Maturity Movements: The 01.08.26 maturity traded between 8.25% and 8.68%. In the 2028 space, the 01.07.28 maturity peaked at 10.55% before recovering to 10.25%. Long-term 2034 and 2035 maturities traded up to highs of 11.70% and 11.50% respectively. • T-Bill Auction: The weekly T-bill auction was undersubscribed, raising only 48.03% (Rs. 67.24 Bn) of the Rs. 140 Bn on offer. Yields reversed their downward trend; the 91-day tenor rose by 5 bps to 8.18%, the 182-day tenor rose by 2 bps to 8.25%, while the 364-day tenor held steady at 8.49%. • Foreign Outflows: Government securities recorded a net foreign outflow for the third consecutive week, shedding Rs. 4.58 Bn. Total foreign holdings dropped to Rs. 133.43 Bn as of May 21. • Liquidity & Forex: Outstanding market liquidity surplus fell to Rs. 141.27 Bn (from Rs. 156.80 Bn). In the forex market, the USD/LKR spot contract exhibited high volatility, trading between Rs. 326.50 and Rs. 348.00 before recovering strongly to close at Rs. 329.00. Average daily trading volume stood at US$ 50.13 Mn.
📈 Rupee Strengthens as CBSL Intervenes to Calm Forex Market
The Sri Lankan Rupee appreciated yesterday after the Central Bank of Sri Lanka (CBSL) moved to stabilize a sentiment-driven foreign exchange market, which faced sharp depreciation earlier in the week due to panic dollar demand. • Overall Figures: The interbank USD spot buy/sell rate eased to Rs. 329/335, recovering from Thursday’s peak weakness of Rs. 331/348. However, the currency remains weaker compared to last week's close of Rs. 321.90/326.00. • Key Interventions: CBSL informally instructed banks to cap the interbank spot exchange rate at Rs. 330. Speculation also arose regarding a potential regulatory reduction in the mandatory export proceeds conversion period from 90 days to 30 days. • Market Dynamics: The initial volatility was driven by importers front-loading Letters of Credit (LCs) and exporters delaying dollar conversions. Following CBSL’s cues, exporter dollar sales resumed, restoring market liquidity, while importers stepped back to the sidelines. • Economic Context: Devaluation pressures were linked to global energy prices and Middle East tensions. However, IMF Mission Chief Evan Papageorgiou expressed confidence in Sri Lanka's stronger policy framework, improved reserves, and ongoing reforms to absorb these external shocks.
📈 CSE Ends Week Down 4.26% Despite Late Three-Day Recovery
• Weekly Overview: The Colombo Stock Exchange (CSE) experienced a net decline over the week due to subdued investor sentiment and exchange rate concerns. The All Share Price Index (ASPI) fell by 4.26% (976.11 points), while the S&P SL20 decreased by 3.55% (223.22 points). • Friday Market Turnaround: The market closed in the green for the third consecutive session on Friday. The ASPI recovered by 0.44% (+95.87 points) to close at 21,929.64, and the S&P SL20 rose by 0.37% (+22.31 points) to end at 6,061.02. • Market Liquidity & Participation: Daily turnover reached nearly Rs. 2.2 Bn with over 78.3 million shares traded. However, overall participation remained low as both high-net-worth and retail investors adopted a cautious wait-and-see approach ahead of upcoming Central Bank (CBSL) policy decisions. • Sector & Stock Highlights: The capital goods sector led daily turnover with a 25% share, followed by food, beverage & tobacco and banking, which jointly contributed 24%. Top positive contributors to the ASPI included John Keells Holdings (JKH), Colombo Dockyard (DOCK), Melstacorp (MELS), Richard Pieris (RICH), and Sampath Bank (SAMP). • Foreign Investor Activity: Foreign market participants recorded a marginal net outflow of Rs. 11.6 million for the session.
📈 LKR Rebounds as US Dollar Selling Rate Eases Below Rs. 340
The Sri Lankan Rupee (LKR) showed significant volatility but managed to regain strength today (22), with the US Dollar (USD) selling rate dropping below the Rs. 340 mark at several commercial banks after a recent sharp surge. • Overall Movement: The recovery comes a day after the USD reached a peak of Rs. 354 yesterday (21), which had marked a steep Rs. 12 increase within a single day. • Commercial Bank Rates: Selling rates varied across major financial institutions this afternoon: • Nations Trust Bank: Rs. 336.49 • Bank of Ceylon: Rs. 336.50 • People’s Bank: Rs. 338.86 • Hatton National Bank: Rs. 340.00 • Sampath Bank: Rs. 340.50 • Commercial Bank: Rs. 342.50 • Economic Context: This stabilization offers temporary relief for macroeconomic stability, impacting import costs and inflation dynamics after a period of rapid, short-term currency depreciation.
📈 Global Markets Rise Amid US-Iran Peace Talk Hopes
Global markets advanced on Friday as investors closely monitored US-Iran peace talks to end a nearly three-month-old Middle East war, though key disagreements persist over Tehran's uranium stockpile and control of the critical Strait of Hormuz waterway. Prolonged energy disruptions continue to fuel global inflationary pressures and reshape interest rate expectations. • Equities & Currencies: MSCI’s Asia-Pacific index rose 0.3%, Japan’s Nikkei gained 2%, and US futures edged up 0.2%. The US Dollar index held near a six-week high at 99.247, supported by safe-haven demand and rising Treasury yields, while the Euro neared a six-week low at $1.1614. • Energy Markets: Oil prices remain volatile but well above pre-war levels. Brent crude rose 2% to US$ 104.71 a barrel (down 6% for the week), while US WTI grew 1.66% to US$ 98.01 a barrel. • Macroeconomic Impact: The borderless energy shock has rewired the monetary policy outlook. Traders are now pricing in potential US Federal Reserve interest rate hikes by year-end, a sharp reversal from pre-war expectations of two rate cuts. Meanwhile, Japan's core inflation slowed to a four-year low in April, complicating the Bank of Japan's rate-hike path.
📈 Secondary Bond Market Activity & Yields Rise Amid Cautious Sentiment
• Market Sentiment: Yields continued to increase driven by heightened geopolitical risks in the Middle East and elevated crude oil prices, keeping investors cautious. • Bond Yield Movements: Significant upward shifts were recorded on key maturities compared to previous day closings: - 2028 (01.07.28): Traded at a high of 10.55% (vs 10.05/20%). - 2032 (01.10.32 & 15.12.32): Traded at a high of 11.48% (vs 11.00/15%). - 2033 (01.06.33): Traded at a high of 11.60% (vs 11.25/45%). - Other maturities ranging from 2026 to 2037 changed hands between 8.45% and 11.60%. • Money Market & Liquidity: - Net liquidity surplus stood at Rs. 158.93 Bn. - CBSL drained Rs. 100.00 Bn via an overnight repo auction at a weighted average rate of 7.75%. - Central Bank deposits (SDFR at 7.25%) stood at Rs. 128.42 Bn, while SLFR withdrawals (at 8.25%) totaled Rs. 69.49 Bn. - Weighted average rates for overnight Call money and REPO were 7.90% and 7.94% respectively. • Forex Market: The USD/LKR spot contracts traded within a broad range of Rs. 331.00 to Rs. 348.00, with a total traded volume of US$ 24.00 Mn recorded for May 20.
📉 Lankan Rupee Hits Lowest Since March 2023 as USD Selling Rate Reaches Rs. 354
• Exchange Rate Movements: The Sri Lankan rupee depreciated sharply today (May 21), with the US dollar selling rate breaching the Rs. 350 mark for the first time in over three years to hit Rs. 354.03. The buying rate was recorded at Rs. 342.63, according to the Central Bank of Sri Lanka. • Day-on-Day Comparison: This marks a significant drop from yesterday (May 20), when the buying rate stood at Rs. 332.23 and the selling rate was at Rs. 342.70. • Key Drivers: Market analysts and official data attribute the sudden pressure on the currency to a mix of domestic factors and global economic uncertainty, heavily influenced by the ongoing Middle East conflict.
📈 T-Bill Rates Edge Up in Undersubscribed Rs. 140 Bn Auction
The weekly Treasury Bill auction was undersubscribed, reversing the previous week's yield declines amid a bearish secondary bond market. • Auction Overview: Raised only 48.03% (Rs. 67.24 Bn) of the Rs. 140.00 Bn on offer during the first phase. The bid-to-offer ratio stood at 1.66 times. • Yield Rates: - 91-day tenor: Up 5 bps to 8.18% - 182-day tenor: Up 2 bps to 8.25% - 364-day tenor: Unchanged at 8.49% • Secondary Market: Remained bearish for the third consecutive session due to global bond pressures, Middle East geopolitical tensions, and elevated crude oil risks. Notable trades included the 2028 maturity at 10.00%–10.15% and the 2036 maturity at 11.50%. • Money Market: Net liquidity surplus stood at Rs. 168.33 Bn. CBSL's Domestic Operations Department drained Rs. 75.00 Bn via an overnight repo auction at a weighted average rate of 7.75%. Overnight call money and repo rates averaged 7.87% and 7.91% respectively. • Forex Market: The USD/LKR spot contracts traded between Rs. 329.25 and Rs. 330.25, with a total traded volume of US$ 41.50 Mn recorded on May 19.
CSE Ends Down Sharply as LKR Depreciation Weighs on Market Sentiment 📉
The Colombo stock market recorded sharp losses yesterday, driven by investor concerns over a depreciating Sri Lankan Rupee (LKR) against the USD, macroeconomic uncertainties, and global supply shock headwinds from geopolitical tensions. • Overall Figures: ASPI: Down 2.28% (-509.02 points) to close at 21,789.05. S&P SL20: Down 1.87% (-114.77 points) to close at 6,034.00. Market Turnover: Reached over Rs. 3.8 Bn with nearly 175.7 Mn shares traded. Foreign Institutional Activity: Net foreign inflow of Rs. 39 Mn, marking a second consecutive session of net buying. • Sector & Stock Breakdowns: Capital Goods: Led market turnover with a 36% share, though the sector index shed 1.68%. Top sector contributors included John Keells Holdings (down Rs. 0.50 to Rs. 19.80), Hayleys (down Rs. 2.00 to Rs. 234.00), and Access Engineering (down Rs. 0.60 to Rs. 74.80). Banking & Diversified Financials: Combined to contribute 24% of daily turnover. The banking sector index decreased by 1.49%, heavily dragged by Hatton National Bank (non-voting) which fell Rs. 9.25 to Rs. 329.25. Top Negative Contributors: Melstacorp (MELS), Sampath Bank (SAMP), JKH, Ceylinco Insurance (CINS), and HNB emerged as the largest drags on the ASPI. • Investor Participation: High Net Worth (HNW) and institutional investor activity remained subdued but focused on JKH, Hayleys, and Access Engineering. Retail investor activity was notably strong, with high interest observed in counters like Citrus Leisure, Co-Operative Insurance Company, and Browns Investments.
📈 Rupee Depreciation Reflects Global Trends, Boosts Export Competitiveness: JAAF
The Joint Apparel Association Forum (JAAF) stated that the recent depreciation of the Sri Lankan rupee is driven by global pressures—including Middle East instability, high fuel prices, and rising shipping costs—rather than domestic economic weakness. Key Highlights: • Regional Currency Movements: The Sri Lankan rupee depreciated by 4.8% against the US dollar, performing better than regional peers such as the Indian rupee (-6.4%), Nepalese rupee (-6.2%), and Indonesian rupiah (-5.2%). • Economic Impact: JAAF and the Central Bank of Sri Lanka (CBSL) emphasize that a weaker rupee enhances export competitiveness, protects jobs, and strengthens foreign exchange earnings and national reserves. • Apparel Sector Significance: The apparel & textiles sector remains a critical pillar of Sri Lanka's economy, generating approximately US$ 5.00 Bn annually and providing employment to around 350,000 people. • Strategic Outlook: JAAF urges a focus on maintaining market confidence, avoiding speculation, and supporting policy stability to protect Sri Lanka's ongoing economic recovery.
📈 Sri Lankan Rupee Hits Record Low Against US Dollar
The Sri Lankan rupee has depreciated sharply against the US dollar, reaching its lowest valuation in over three years based on official exchange rates. • Currency Performance: The Central Bank of Sri Lanka reported today (May 20, 2026) that the US dollar buying rate has climbed to Rs. 332.08, while the selling rate has reached Rs. 342.70. • Historical Context: This marks the highest buying and selling rates recorded for the US dollar since March 20, 2023, reflecting sudden downward pressure on the local currency. • Economic Impact: A weakening rupee typically increases the cost of imports, directly impacting core sectors like apparel & textiles (raw materials) and fuel, which can escalate domestic inflationary pressures.
📈 Rupee Weakens Against US Dollar as Spot Market Trades Above Rs. 328
• Exchange Rate Movements: The Sri Lankan rupee weakened in the spot market, with the indicative exchange rate closing at Rs. 326.92 per dollar compared to the previous close of Rs. 325.62. Spot contracts traded within a higher range of Rs. 327.85 to Rs. 328.90 during the session (up from Rs. 326.50 to Rs. 327.50 previously). • Year-to-Date Performance: As of May 18, the rupee has depreciated by approximately 4.8% against the US dollar. However, official statements note this decline remains lower than that of several regional economies. • Key Drivers of Depreciation: Global factors: Escalating Middle East tensions, rising global oil prices, and overall global uncertainty leading to a stronger US dollar. Domestic factors: Heightened importer demand for foreign exchange, delayed conversion of export earnings, and market speculation. • Policy Stance: The Central Bank of Sri Lanka continues to maintain a flexible exchange rate policy, leaving the currency's value to be determined by market demand and supply dynamics.
📉 Bond Market Yields Spike Ahead of Rs. 140 Bn T-Bill Auction
The secondary bond market turned bearish for a second consecutive day, with yields climbing due to selling pressure and global market trends. Defensive trading was driven by geopolitical uncertainties in the Middle East and elevated crude oil prices, though healthy volumes were maintained via block transactions. Key Market Highlights: • Bond Yield Movements: Short-term: 01.08.26 maturity traded at 8.25%. Medium-term: 2028 maturities hit 9.95%–10.00%, while 2029 maturities moved up to 10.05%–10.30%. Long-term: 2034–2036 maturities saw elevated yields ranging between 11.32% and 11.48%. • Upcoming T-Bill Auction: The Central Bank will offer Rs. 140.00 Bn today (Rs. 65.00 Bn for 91-day, Rs. 40.00 Bn for 182-day, and Rs. 35.00 Bn for 364-day tenors). This is lower than the estimated maturing volume of Rs. 162.00 Bn. In the previous auction, yields had declined across all tenors for the first time in 10 weeks, with the 91-day average at 8.13%. • Money Market Liquidity: Net liquidity surplus stood strong at Rs. 181.68 Bn. Overnight call money and repo rates averaged 7.84% and 7.89% respectively, while the CBSL drained Rs. 75.00 Bn via an overnight repo auction at 7.74%. • Forex Market: The USD/LKR spot contracts traded in a range of Rs. 327.85 to Rs. 328.90. Total traded volume stood at US$ 76.25 Mn.
📈 CSE Edges Lower Despite Early Gains; Foreign Buying Turns Positive
The Colombo stock market closed marginally lower yesterday, reversing a sharp early gain of over 235 points due to late profit-taking driven by economic and global uncertainties. • Overall Market Figures: All Share Price Index (ASPI) fell by 0.07% (15.40 points) to close at 22,298.07. S&P SL20 decreased by 0.21% (31.21 points) to end at 6,148.77. Daily market turnover reached over Rs. 2.3 Bn, with more than 93.1 million shares traded. • Foreign & Investor Participation: Foreign investors emerged as net buyers, recording a net inflow of over Rs. 50 Mn. Participation from both high-net-worth (HNW) and retail investors remained subdued. • Sector & Stock Performance: The capital goods sector led daily market turnover with a 29% share. The banking and food, beverage & tobacco sectors collectively contributed 27% to turnover. Top negative contributors to the ASPI included JKH, RICH, CIC, SAMP, and NDB.
📈 Global Markets: Asian Shares Mixed, Oil Eases on Trump's Iran Comments
Global markets showed mixed reactions on Tuesday as investors weighed U.S. President Donald Trump's decision to pause a planned attack on Iran to allow for nuclear negotiations, temporarily easing energy supply fears. • Energy & Commodity Impact: Brent crude futures fell over 2% to US$ 109.41 a barrel, while U.S. crude dropped 1.3% to US$ 107.25 a barrel. Despite the dip, both benchmarks remain more than 50% above pre-war levels. Spot gold eased marginally to US$ 4,562.50 an ounce. • Equities & Regional Breakdown: • MSCI's broadest index of Asia-Pacific shares (ex-Japan) fell 0.22%. • South Korea's Kospi dropped 2%, while Japan's Nikkei bucked the trend, rising 1%. • U.S. futures edged lower (Nasdaq down 0.07%, S&P 500 down 0.03%) ahead of highly anticipated Nvidia earnings. European futures (EUROSTOXX 50) rose 0.4%. • Bonds & Forex: The drop in oil prices halted a steep global bond selloff. Benchmark 10-year U.S. Treasury yields eased from a one-year high to 4.5974%, while the two-year yield dipped to 4.0564%. The US$ strengthened on safe-haven demand, rising 0.1% against the Japanese Yen to 159 yen, while the Euro and Sterling both shed 0.1%. _Note: Market sentiment remains cautious as G7 finance ministers flag concerns over public debt, volatility, and potential inflation-driven central bank rate hikes._
📈 Secondary Bond Market Yields Rise Amid Global Tensions
The Sri Lankan secondary bond market started the week with increasing yields, driven by defensive investor sentiment due to rising Middle East tensions and surging crude oil prices (Brent crude exceeding US$ 110/bbl). • Bond Market Activity: While overall activity was subdued due to global uncertainty, transaction volumes remained healthy, supported by several block trades. • Key Maturity Yields: • 15.12.27 traded at 9.20% • 15.10.29 traded at 10.00% • 01.07.30 traded up to 10.20%–10.25% • 01.06.33 traded at 11.05% • 15.06.34 traded at 11.25% • 15.08.36 traded between 11.35%–11.40% • Money Market Liquidity: The net liquidity surplus stood at Rs. 183.53 Bn. A total of Rs. 151.18 Bn was deposited at the Central Bank’s SDFR (7.25%), while Rs. 42.65 Bn was withdrawn from the SLFR. Additionally, the Central Bank drained Rs. 75.00 Bn via an overnight repo auction at a weighted average rate of 7.73%. • Forex Market: The USD/LKR spot contracts traded within an intraday range of 326.50 to 327.50. Total traded volume for May 15 stood at US$ 86.50 Mn.
📈 CSE Suffers Third Highest Single-Day Points Decline on Global and Domestic Uncertainties
The Colombo Stock Exchange (CSE) started the week down sharply to its lowest level in over a month, with the benchmark index recording its third largest single-day points drop in history, driven by LKR depreciation, geopolitical tensions, and economic uncertainty. • Market Performance & Turnover • ASPI: Down 2.59% (-592.28 points) to close at 22,313.47. This marks the third-largest single-day decline, surpassed only by drops on 3 March 2026 and 1 December 2025. • S&P SL20: Down 1.95% (-122.26 points) to close at 6,161.98. • Market Turnover: Reached nearly Rs. 4.9 Bn with over 210 million shares traded. • Foreign Activity: Net outflow of Rs. 114.3 Mn as foreign investors remained net sellers. • Sector & Counter Breakdown • Capital Goods: Led daily turnover with a 31% share, though the sector index lost 2.83%. Major drags included John Keells Holdings (down Rs. 0.40 to Rs. 20.30), ACL Cables (down Rs. 4.50 to Rs. 98.50), and Hemas Holdings (down Rs. 0.90 to Rs. 31.80). • Banking: Second highest turnover contributor, with the sector index decreasing by 1.50%. Hatton National Bank fell by Rs. 4.75 to Rs. 407.50. • Top Negative Contributors: JKH, RIL, HAYL, COMB, and DOCK emerged as the primary losers dragging down the ASPI. • Investor Sentiment • High-net-worth (HNW) and institutional participation remained at average levels, focusing on counters like JKH and Hemas. • Heightened retail investor activity, including interest in Hela Apparel Holdings and SMB Leasing, notably accelerated the day's selling pressure.
📈 Global Oil Surges to $104 as Iran War Drags; Wall Street Hits Records
• Overall Oil Figures: The price of Brent crude oil rose by 2.9% to settle at US$ 104.21 per barrel following US rejection of Iran's latest ceasefire proposal. The prolonged conflict has driven Brent up from approximately US$ 70, causing global inflationary pressure due to the closure of the Strait of Hormuz. • Global Market Impact: • Despite rising energy costs, US stock markets achieved fresh record highs driven by strong corporate earnings and economic resilience. • The S&P 500 rose 0.2%, the Dow Jones gained 95 points (0.2%), and the Nasdaq composite added 0.1%. • Sector & Supply Chain Impact: • High oil prices and logistics snarls from the Persian Gulf blockade are driving up raw material costs globally. • Fertilizer manufacturer Mosaic reported weaker-than-expected quarterly results, with its stock falling 1.8% due to surging costs for sulfur and other inputs despite higher finished product prices. _Note: Sri Lanka's economy remains highly sensitive to these global energy shocks and shipping disruptions, which directly impact national inflation and import costs._
📈 Global Market Shock: Oil Surges Above $111 as Asian Stocks and Bonds Tumble
• Macro Overview: Asian share markets slid on Monday (MSCI Asia-Pacific down 0.9%, Nikkei down 1.1%) as fresh drone attacks in the Gulf and the closure of the Strait of Hormuz drove energy prices and global bond yields higher, intensifying fears of inflation and global recession. • Energy and Commodities: Brent crude rose 1.9% to US$ 111.34 per barrel, and U.S. crude climbed 2.3% to US$ 107.84 per barrel. Analysts warn Brent could hit US$ 130–140pb by end-June if inventories reach critical levels, potentially pushing UK and Eurozone inflation near 10%. Meanwhile, gold dipped 0.2% to US$ 4,527 an ounce. • Bond Markets and Monetary Policy: Global bonds were hit hard on inflation fears. U.S. 10-year note yields hit a 15-month high of 4.631%, while Japanese yields reached peaks not seen since 1996. Markets now price in a 50-50 chance of a Federal Reserve rate hike this year to head off an inflationary spiral. • Corporate and Tech Outlook: Corporate earnings face scrutiny this week. The AI-driven bull run will be tested by upcoming earnings from Nvidia, while results from major retailers like Walmart will signal how consumers are coping with elevated energy costs. • National Context: For an import-dependent economy like Sri Lanka, escalating global oil prices and a strengthening U.S. dollar (benefiting from safe-haven flows) typically pressure import bills and external reserves, while rising global inflation impacts key export destinations.
📊 Global Gold Prices Hit 1.5-Month Low Amid Rising Oil and Rate Concerns
Global gold prices fell to a 1.5-month low on Monday as escalating Middle East tensions pushed crude oil higher, sparking inflation fears and expectations of prolonged high interest rates. • Market Figures: Spot gold dropped 1.1% to US$ 4,488.99 per ounce, its lowest since March 30. U.S. gold futures for June delivery fell 1.5% to US$ 4,493.30. Spot silver slid 2.2% to US$ 74.30, while platinum and palladium fell 0.6% and 1.2% respectively. • Geopolitical Drivers: Crude oil hit a two-week high following a drone strike on a UAE nuclear power plant and intercepted drones in Saudi Arabia. Higher energy costs have raised bets on a U.S. Federal Reserve rate hike by December (currently at a 50% probability), reducing the appeal of non-yielding bullion. • Regional Impacts: Major consumer India has banned silver imports in nearly all forms with immediate effect to defend the rupee. Gold discounts in India hit record highs last week, whereas Chinese investment demand kept premiums firm.
📈 Sri Lanka Bond Yields Resilient Amid Global Headwinds
The secondary bond market showed resilience last week as strong domestic fiscal data countered global uncertainties like the Middle East conflict and high crude oil prices. • Fiscal Performance & Auction Results: - Revenue & grants rose 35.5% YoY to Rs. 1.03 Tn in Jan-Feb 2026. - Primary surplus expanded 66.1% YoY to Rs. 545.42 Bn; budget balance flipped to a surplus of Rs. 169.71 Bn. - Treasury Bond auction raised Rs. 176.62 Bn against a Rs. 250 Bn offer. Weighted yields came in line with/below market expectations (e.g., 2030 maturity at 10.16%, 2034 at 11.24%). - An additional Rs. 13 Bn was raised via the Direct Issuance Window. • Treasury Bills & Interest Rates: - Treasury Bill auction was fully subscribed, raising Rs. 80 Bn. - Bill yields declined across the board for the first time in 10 weeks: 91-day down 7 bps to 8.13%, 182-day down 1 bp to 8.23%, and 364-day down 3 bps to 8.49%. • Liquidity & Foreign Holdings: - Net foreign outflow of Rs. 4.73 Bn recorded, dropping total foreign holdings to Rs. 138 Bn. - Market liquidity surplus fell to Rs. 156.80 Bn (from Rs. 253.66 Bn). Weighted average Call Money and Repo rates closed at 7.79% and 7.85%. • Forex Market: - The USD/LKR spot contracts traded between Rs. 321.90 and Rs. 326.00. - Daily average traded volume stood at US$ 66.15 Mn for the first four days.
CSE Closes Week 0.69% Lower Amid Global Uncertainty 📉
The Colombo stock market faced a downward trend this week as geopolitical tensions and cautious investor sentiment weighed on performance, despite a marginal recovery on Friday. • Market Indices: The ASPI declined by 0.69% (158.23 points) to end at 22,905.75, while the S&P SL20 fell 0.55% (35 points) to 6,284.24. • Foreign Activity: Significant net foreign selling was recorded at Rs. 579.98 million for the week, with a heavy daily net outflow of Rs. 670.7 million on Friday. • Sector Performance: The Capital Goods sector dominated activity, contributing 38% of daily turnover, followed by Banking and Diversified Financials at 28%. • Key Contributors: Commercial Bank (COMB) and Hayleys Fabric (HUNT) were top positive contributors, though market breadth remained negative with 125 decliners against 83 gainers. • Volume & Turnover: Weekly turnover stood at over Rs. 2.8 billion with 114.8 million shares traded; participation from both retail and high-net-worth investors remained moderate.
📈 LKR Trends: US Dollar Selling Rate Surpasses Rs. 331
The Central Bank of Sri Lanka (CBSL) reported a significant shift in the exchange rate today, May 15, 2026, marking a multi-month high for the US Dollar against the Rupee. • Exchange Rate Breakdown: The US Dollar buying rate stands at Rs. 323.53, while the selling rate has climbed to Rs. 331.15. • Historical Context: This marks the first time the buying rate has exceeded the Rs. 323 threshold since December 5, 2023. Similarly, the selling rate has crossed the Rs. 331 mark for the first time since December 22, 2023. • Spot Market Impact: The USD/LKR SPOT Indicative Exchange Rate rose to Rs. 324.71 today, reaching its highest level since late December 2023. • Economic Implications: The weakening Rupee typically impacts import costs and inflationary pressures, while potentially benefiting export sectors such as tea, apparel & textiles, and ICT/BPM by increasing local currency earnings. _Source: Central Bank of Sri Lanka (Provisional Data)_
USD Surges to Multi-Month High Against LKR 📈
The Sri Lankan Rupee faced renewed pressure on May 14, 2026, as the US Dollar climbed to its highest levels since the start of the year. • Overall Exchange Rates: The average rate for the US Dollar rose to Rs. 323.95, a significant jump from Rs. 322.27 recorded just the previous day. • Commercial Bank Rates: Buying Rate: Increased to Rs. 322.28 (from Rs. 319.77), marking the highest level since mid-December 2023. Selling Rate: Surpassed the Rs. 329 threshold to settle at Rs. 329.92 (from Rs. 327.38), the highest since late December 2023. • Market Impact: This sharp upward movement reflects a weakening trend for the rupee compared to the relatively stable performance seen throughout early 2024. The sudden spike in the selling price may impact the import sector and overall cost of living if the trend persists.
T-Bill Rates Decline Across All Tenors Amid Full Subscription 📉
The weekly Treasury Bill auction saw yields retreat for the first time in 10 weeks, reversing a recent upward trend. The monetary sector showed strong demand with the Rs. 80.00 Bn offer fully subscribed at a bid-to-offer ratio of 2.74x. • Auction Results (Weighted Average Yields): • 91-Day: 8.13% (down 7 bps) • 182-Day: 8.23% (down 1 bps) • 364-Day: 8.49% (down 3 bps) • Secondary Bond Market: Yields edged up slightly due to profit-taking following a previous rally. Key trades included the 2026 maturity at 8.15% and the 2030 maturity at 10.05%. Market sentiment remains cautious due to Middle Eastern tensions and oil prices, though optimism persists regarding upcoming US-China diplomatic talks. • Liquidity & Money Market: The system recorded a significant net liquidity surplus of Rs. 255.68 Bn. The Central Bank drained Rs. 65.00 Bn via overnight repo at 7.70%. Overnight call money and repo rates averaged 7.78% and 7.83%, respectively. • Forex Market: The USD/LKR spot exchange rate closed at Rs. 324.00/325.50, slightly weaker than the previous day's close. Total traded volume was recorded at US$ 132.56 Mn. _Note: Based on provisional data from the Central Bank and Wealth Trust Securities._
CSE Closes in Red as ASPI Dips Below 23,000 Mark 📉
The Colombo Stock Exchange (CSE) experienced a downturn yesterday, driven by geopolitical concerns and weaker corporate earnings in the banking sector. • Market Indices & Turnover The benchmark ASPI fell by 0.41% (95 points) to close at 22,920.32, while the S&P SL20 dropped 0.40% to 6,269.41. Daily turnover remained steady at over Rs. 2.8 Bn, with 142.4 million shares traded. • Sector Performance The capital goods sector led turnover with a 19% share. Diversified financials and food, beverage & tobacco followed, contributing a combined 32%. The banking sector faced downward pressure following a decline in 1Q 2026 earnings. • Investor Sentiment & Activity Market activity was characterized by profit-taking and caution due to Middle East tensions and the upcoming US-China summit. Participation from High Net Worth (HNW) and retail investors was notably lower. • Foreign Interest & Top Counters Foreign investors recorded a net outflow of Rs. 29.5 Mn. LMF.N saw the highest net foreign buying (Rs. 108.8 Mn), while JKH.N led net foreign selling (Rs. 184.5 Mn). Major negative contributors to the ASPI included CINS, MELS, BUKI, NDB, and DFCC. • Valuation The overall Market P/E stood at 11.72. Crossings represented 12.8% of total turnover, primarily led by JKH.N.
Rs. 250 Bn Bond Auction Sees Strong Market Rally 📈
Sri Lanka’s secondary bond market rallied yesterday as Treasury bond auction yields matched or beat market expectations, despite global geopolitical tensions. While the total auction was undersubscribed, high liquidity and aggressive buying drove rates down post-auction. • Auction Results: The government raised Rs. 176.62 Bn out of a targeted Rs. 250 Bn across four maturities. Despite the shortfall, the bid-to-acceptance ratio was a robust 2.47 times. • Yield Performance: 01.08.30 Maturity: Issued at a weighted average yield of 10.16% (fully accepted). 15.06.34 Maturity: Issued at 11.24% (fully accepted). 15.08.36 Maturity: Issued at 11.40%, which was notably below market expectations. 15.08.39 Maturity: All bids for this long-term tenor were rejected. • Secondary Market & Liquidity: A post-auction rally saw the 15.06.34 bond drop to 11.08% in secondary trading. National liquidity remains high with a net surplus of Rs. 247.19 Bn, supported by heavy deposits at the Central Bank’s Standing Deposit Facility. • Currency Market: The USD/LKR spot exchange rate closed slightly weaker at Rs. 322.50/323.00, compared to the previous day's Rs. 322.00/322.40. Total traded volume stood at US$ 43.75 Mn. _Note: Results based on provisional auction data._
CSE Edges Higher Amid Geopolitical Volatility 📈
The Colombo Bourse closed marginally up yesterday as investor caution prevailed due to escalating US-Iran tensions and rising global oil prices. • Market Performance: The ASPI gained a slight 0.02% (+3.60 points) to close at 23,015.32, while the S&P SL20 dipped 0.09% to 6,294.31. Losers (116) narrowly outpaced winners (108). • Trading Activity: Market turnover reached approximately Rs. 3.7 Bn with 158.6 million shares traded. Participation remained mixed across high-net-worth and retail segments. • Sector Highlights: • Diversified Financials led turnover with a 14% share. • Real Estate Management & Development and Transportation sectors collectively contributed 27%. • Top positive contributors included MELS, RIL, CIC, BUKI, and CARG. • Investor Sentiment: Foreign investors recorded a net outflow of Rs. 361.3 Mn. Market analysts attribute the "flat" performance to global uncertainty and the impact of geopolitical instability on energy costs.
📈 Global Oil Prices Surge Amid Fragile US-Iran Peace Talks
Global oil benchmarks rose nearly 1% on Tuesday as geopolitical tensions in the Middle East continue to threaten supply stability, impacting energy costs for importing nations like Sri Lanka. • Overall Figures: Brent Crude futures climbed 0.8% to US$ 105.07 per barrel. WTI crude increased 1.0% to US$ 99.06 per barrel. Both benchmarks saw a significant 2.8% gain on Monday. • Supply & Logistics: • Disagreements over the Strait of Hormuz remain critical; the passage handles ~20% of global oil and LNG flows. • OPEC output in April hit its lowest level in over 20 years due to export curtailments. • Saudi Aramco warned that continued disruptions could delay global market stability until 2027, with a weekly loss of 100 million barrels. • Market Outlook: • Analysts suggest Brent could spike to US$ 115+ if blockades escalate, while a peace breakthrough could trigger a US$ 8-12 correction. • Focus shifts to the upcoming US-China meeting following new sanctions on entities facilitating Iranian oil shipments. • Impact on Sri Lanka: Persistent high prices above US$ 100 per barrel exert pressure on Sri Lanka's forex reserves and energy costs, potentially affecting the transportation and manufacturing sectors.
Indian Rupee Hits Record Low of 95.62 as Oil Shock & Outflows Intensify Pressure 📉
The Indian Rupee (INR) plummeted to an all-time low of 95.62 against the US Dollar on Tuesday, driven by a 46% surge in Brent crude prices following the Iran war. This volatility poses significant implications for Sri Lanka’s regional trade dynamics and energy pricing. • Currency Performance: The INR has depreciated 6.5% year-to-date, marking it as the worst-performing Asian currency. It has lost 5.2% since the outbreak of the regional conflict. • Capital Outflows: Foreign investors have withdrawn over US$ 20 Bn from Indian equities since the war began, with US$ 900 Mn pulled out on Monday alone. • Economic Impact: Higher oil prices are expected to widen the current account deficit and trigger a third consecutive balance of payments deficit for India. Growth forecasts are being revised downward while inflation estimates rise. • Regional Comparison: Alongside the INR, the Philippine peso and Indonesian rupiah remain the hardest hit among oil-importing nations. • Policy Response: PM Modi has urged limits on fuel use and imports to conserve FX. Analysts flag potential measures including curbs on gold imports and tighter remittance rules. Market Outlook: ANZ has lowered its December INR target to 97.5, while BMI warns of a potential slide to 100 if the conflict escalates. (Based on provisional data).
Bond Yields Steady Ahead of Rs. 250 Bn Mega Auction 📈
The secondary bond market remained broadly steady with subdued activity as investors adopted a "wait-and-see" approach ahead of today's major Treasury Bond auction. • Fiscal Performance (Jan-Feb 2026): Domestic sentiment was bolstered by a 296% YoY turnaround in the overall budget balance, recording a surplus of Rs. 169.71 Bn (vs. a deficit of Rs. 86.62 Bn in 2025). Revenue and grants rose 35.5% YoY to Rs. 1.03 Tn. • Upcoming T-Bond Auction: A massive Rs. 250 Bn is on offer today (May 12) across four maturities (2030, 2034, 2036, and 2039). This follows a previous undersubscribed auction on April 9 where only Rs. 82.09 Bn was raised. • Secondary Market Rates: • Short-term: 15.12.26 maturity traded at 8.45%. • Medium-term: 2028 maturities ranged between 9.60% - 9.80%. • Long-term: 15.06.34 maturity traded between 11.18% - 11.22%. • Currency & Liquidity: • USD/LKR: Spot contracts closed slightly weaker at Rs. 322.00/322.40 compared to the previous close of Rs. 321.75/321.85. • Liquidity: The money market maintained a net surplus of Rs. 262.96 Bn. Market sentiment remains sensitive to crude oil prices and Middle Eastern geopolitical tensions, offsetting the positive domestic fiscal data.
📈 CSE Starts Week in Red Despite Strong Foreign Buying
The Colombo Bourse closed in negative territory on Monday as early gains succumbed to selling pressure, largely influenced by renewed Middle East tensions and rising global oil prices. • Market Performance: • ASPI: Down 0.23% (-52.26 points) to 23,011.72. • S&P SL20: Down 0.30% (-19.22 points) to 6,300.02. • Turnover: Recorded at Rs. 4.93 Bn, driven significantly by High-Net-Worth (HNW) activity. • Sector Highlights: • Banking: Led turnover with a 62% share, though the sector index dipped 0.53%. Key movements included Seylan Bank (+Rs. 0.25) and Commercial Bank (-Rs. 1.75). • Diversified Financials: Second highest contributor; sector index rose 0.22% supported by Ceylon Land and Equity. • ICT/Logistics: Digital Mobility Solutions Lanka (PickMe) saw a price gain of Rs. 1.25. • Investor Sentiment & Liquidity: • Foreign Activity: Strong net foreign inflow of Rs. 597.5 Mn, with Seylan Bank (SEYB.N) leading net buying at Rs. 624 Mn. • Strategic Trades: Crossings (off-market deals) dominated the session, accounting for 61.6% of total turnover, led by a massive Rs. 2.8 Bn crossing in Seylan Bank. • Breadth: 105 counters gained versus 128 losers. Market P/E stood at 11.78.
📈 Colombo Stocks Dip Despite Strong Foreign Inflow & Rs. 4.92 Bn Turnover
The Colombo Stock Exchange closed in negative territory this Monday, marked by a slight decline in main indices despite significant activity in the banking sector and a boost from international investors. • Market Performance: The All Share Price Index (ASPI) fell by 52.26 points (-0.23%) to close at 23,011.72. The S&P SL20 Index dropped 19.22 points (-0.30%) to finish at 6,300.02. • Turnover & Liquidity: Total market turnover reached Rs. 4.92 Bn. A major driver was Seylan Bank, which accounted for Rs. 2.78 Bn (approx. 56%) of the day’s total value. • Investor Sentiment: Foreign Investors: Maintained a bullish stance with a net foreign inflow of Rs. 597 Mn (Buying: Rs. 661 Mn | Selling: Rs. 64 Mn). Local Investors: Recorded a net selling position, with buying at Rs. 4.26 Bn against selling of Rs. 4.86 Bn. The market remains focused on high-value transactions within the banking & financial services sector, reflecting ongoing portfolio rebalancing.
📈 LKR Depreciates 3.6% Against US Dollar in 2026
The Sri Lankan Rupee has recorded a year-to-date depreciation of 3.6% against the US Dollar as of 08 May 2026, marking a significant shift in the foreign exchange landscape. • Key Exchange Rates (11 May 2026): Buying Rate: Rs. 318.03 Selling Rate: Rs. 325.64 Indicative Rate: Rs. 321.87 • Historical Context: This reflects the highest value for the US Dollar against the Rupee since 16 January 2024. The data, released by the Central Bank of Sri Lanka, highlights ongoing volatility in the monetary sector and impacts on import costs and debt servicing. • Market Outlook: The 3.6% decline so far this year signals a departure from previous stability, directly affecting the trading and manufacturing sectors reliant on foreign inputs. _Data based on Central Bank of Sri Lanka daily exchange rate bulletin._
📈 Bond Yields Decline as Geopolitical Tensions Ease
The secondary bond market saw a strong relief rally late last week, driven by optimism over a potential US-Iran deal which pushed Brent crude prices below $ 100 per barrel. This shift significantly improved risk sentiment and lowered inflation concerns in the domestic market. • Secondary Bond Market Movements Yields declined sharply across the curve with higher transaction volumes: • 2026 Tenors: 01.08.26 fell from 8.32% to 8.20%. • 2028 Tenors: 01.07.28 dropped from 9.80% to 9.65%. • 2030-2032 Tenors: 01.07.30 eased to 10.15% while 01.10.32 hit a low of 10.70%. • Long-term (2034): 15.06.34 traded down from 11.31% to 11.15%. • Treasury Bill Auction & Liquidity • T-Bill Rates: Yields stabilized at last week's auction. The 91-day and 364-day tenors remained at 8.20% and 8.52% respectively, while the 182-day fell 1bp to 8.24%. • Money Market: Liquidity surplus rose to Rs. 253.66 Bn from Rs. 218.70 Bn. • Bond Auction: A major Rs. 250 Bn T-Bond auction is scheduled for May 12 across four maturities. • External Sector & Forex • Foreign Holdings: Recorded a net outflow of Rs. 1.47 Bn, reducing total holdings to Rs. 142.73 Bn. • Currency: The Rupee depreciated slightly, closing at Rs. 321.75/85 against the USD compared to the previous week's Rs. 319.75/320.00. _Note: Summary based on provisional market data for the week ending May 8, 2026._
📈 CSE Crosses 23,000 Milestone: Weekly ASPI Gains 2.28%
The Colombo stock market demonstrated strong momentum this week, with the benchmark index surpassing the 23,000 mark for the first time since February 2026. Despite global volatility stemming from Middle East tensions, the market secured its third consecutive day of gains on Friday. • Overall Performance: ASPI: Up 2.28% (514.45 points) for the week, closing at 23,063.98. S&P SL20: Up 1.8% (111.68 points) for the week, closing at 6,319.24. • Market Activity: Daily Turnover: Recorded at approximately Rs. 4.1 Bn. Trading Volume: Over 273.7 million shares traded. Foreign Interest: Net foreign inflow of Rs. 26.2 million. • Sector & Stock Highlights: Leading Sectors: Capital Goods led turnover (23%), followed by Diversified Financials and Banking (33% combined). Top Contributors: Key gains driven by Ceylinco Insurance (CINS), Hayleys (HAYL), Colombo Dockyard (DOCK), Dialog (DIAL), and HNB. • Market Sentiment: Elevated retail participation and improved activity from high-net-worth investors supported the indices, helping the market withstand early profit-taking and global macro pressures.
📈 CSE Hits 10-Week High: ASPI Gains 13.5% Since March Low
The Colombo stock market maintained its upward momentum for a second consecutive session, reaching its highest level in 10 weeks as global sentiment improved. • Market Performance: The ASPI rose by 1.13% (+258.09 points) to close at 22,997.86, while the S&P SL20 increased by 0.75% to 6,292.26. The index has now rebounded 13.5% from its post-Middle East conflict low on 19 March. • Trading Volume: Market turnover reached approximately Rs. 5.3 Bn with over 514.6 million shares traded. Retail participation remained high, though High Net Worth (HNW) activity was noted as subdued. • Sector Contributions: The Materials sector led the day with 26% of total turnover. Diversified Financials and Capital Goods followed, contributing a combined 24%. • Investor Sentiment: Gains were driven by easing global oil prices despite ongoing regional tensions. Foreign investors recorded a marginal net outflow of Rs. 22.3 Mn. • Penny Stocks: Continued interest was observed in selected low-value shares, reflecting active retail engagement in the current rally.
CSE Resumes Bullish Run: ASPI Surges 258 Points as Turnover Tops Rs. 5.28 Bn 📈
The Colombo Stock Exchange (CSE) maintained positive momentum on May 7th, marked by robust domestic participation and high liquidity. • Market Performance Overview • ASPI: Rose by 258.09 points (+1.13%) • S&P SL20: Rose by 47.13 points (+0.75%) • Turnover: Totaled Rs. 5.28 Billion • Volume: 514.6 million shares traded via 40,268 transactions • Sector & Stock Highlights • Top Gainers: Industrial Asphalt surged 40% (Rs. 0.70), followed by SMB Finance (Non-voting +33.33%; Voting +25%). • Key Contributors: John Keells Holdings (JKH) led turnover at Rs. 368.2 Mn, followed by Commercial Bank (Rs. 345.5 Mn) and Ceylon Tobacco (Rs. 337.6 Mn). • Plantations & Leisure: Mixed performance with Horana Plantations (-5.54%) and Palm Garden Hotels (-7.08%) among the top losers. • Investor Sentiment & Capital Flows • Domestic Participation: Contributed Rs. 5.03 Bn, acting as the primary market driver. • Foreign Activity: Net foreign outflow of Rs. 22.32 Mn (Purchases: Rs. 247.48 Mn vs. Sales: Rs. 269.80 Mn).
Oil Prices Volatile Amid U.S.-Iran Negotiations 📉
• Global Market Impact: Front-month Brent Crude futures dipped 1.8% to $99.45 per barrel, while WTI fell 2% to $93.18. This follows a volatile session where prices previously crashed by 7% due to shifting expectations of a diplomatic breakthrough. • Geopolitical Developments: Markets are reacting to a U.S. proposal for a memorandum aimed at a gradual reopening of the Strait of Hormuz and lifting port blockades. However, Iranian officials indicate major sticking points remain, specifically regarding their nuclear program. • Supply Constraints: Despite the price dip, the market remains tight. U.S. crude inventories are depleting as global buyers increasingly rely on American barrels to offset disrupted Middle Eastern supply. • Sri Lankan Context: As an oil-importing nation, continued volatility in global energy prices and the status of the Strait of Hormuz remain critical factors for Sri Lanka's energy security, transport costs, and foreign exchange reserves.
📈 Treasury Bill Auction Sees Strong Demand as Liquidity Surpasses Rs. 250 Bn
The weekly Treasury Bill auction showed robust investor appetite, with the full Rs. 100 Bn offer subscribed at a bid-to-offer ratio of 2.15 times. This follows a period of rising yields, now showing signs of stabilization. • Auction & Interest Rates: Weighted average yields remained largely steady. The 91-day tenor held at 8.20%, and the 364-day at 8.52%. The 182-day tenor recorded a marginal decline of 1 basis point to 8.24%. • Secondary Bond Market: Yields rose for a third session amid geopolitical tensions in the Middle East and oil price volatility. Activity remained healthy due to block trades, with 2028-2030 maturities trading between 9.70% and 10.17%. • Market Liquidity: Net liquidity surplus climbed to Rs. 254.52 Bn. The Central Bank (CBSL) absorbed Rs. 184.52 Bn through the Standing Deposit Facility and drained an additional Rs. 70 Bn via overnight repo auctions. • Currency & Forex: The USD/LKR spot exchange rate closed slightly weaker at Rs. 320.20/321.00 compared to the previous close of Rs. 319.90/320.40. Daily traded volume stood at $ 71.55 Mn.
📈 CSE Rebounds as Global Oil Prices Ease
The Colombo Bourse saw a sharp recovery yesterday, buoyed by de-escalating Middle East tensions and a drop in global oil prices (WTI falling below $100). The market closed with 161 gainers against 67 decliners. • Market Indices & Turnover The ASPI climbed 0.69% (+155.47 points) to 22,739.77, while the S&P SL20 rose 0.51% to 6,245.13. Daily turnover reached over Rs. 4.1 Bn, involving 377 million shares. • Sector Performance Food, Beverage & Tobacco led activity with a 16% turnover share, followed by Diversified Financials and Consumer Services. Combined, these sectors plus Banking accounted for nearly 56% of the day's turnover. • Investor Activity Retail participation remained high, while HNW activity was subdued. Foreigners ended as net buyers with a net inflow of Rs. 62.4 Mn. Top foreign buying was seen in HNB.X (Rs. 87.6 Mn). • Top Contributors & Stock Moves JKH, HNB, MELS, HAYL, and RIL were the primary index drivers. Notable volume was seen in Hatton Plantations (flat at Rs. 26.90) and Janashakthi Ltd (up 5.8% to Rs. 14.40). Lanka IOC dipped slightly to Rs. 138.50. _Data based on market closing May 6, 2026._
📈 CSE Closes in Green: ASPI Gains 0.69% Amid Strong Turnover
The Colombo Stock Exchange (CSE) maintained positive momentum today (06 May 2026), with benchmark indices climbing on the back of blue-chip performance and robust domestic participation. • Market Performance All Share Price Index (ASPI): 22,739.77 (+155.47 points or 0.69%) S&P Sri Lanka 20: 6,245.13 (+31.89 points or 0.51%) • Sector & Stock Drivers The indices were primarily bolstered by the diversified holdings and banking sectors. Top contributors included: John Keells Holdings PLC: +10.69 points Hatton National Bank PLC: +10.67 points Melstacorp PLC: +10.60 points Hayleys PLC: +8.58 points • Liquidity & Investor Sentiment Total Equity Turnover: Rs. 4.13 Bn Market Participation: Domestic investors dominated 97.3% of the session. Foreign Interest: The market recorded a net foreign inflow of Rs. 62.4 Mn. Top Traded Stocks: Citrus Leisure (Rs. 415.3 Mn) and Janashakthi Insurance (Rs. 370.6 Mn) led turnover, reflecting activity in the leisure and insurance segments. The day's performance reflects steady investor confidence in heavyweight stocks, contributing to the broader stability of the local equity market.
📉 LKR Depreciates: Dollar Selling Rate Crosses Rs. 324
The Sri Lankan Rupee continued its downward trend against the US Dollar today (May 06), hitting its lowest levels in over two years as market pressure mounts on the local currency. • Exchange Rate Movements: The selling rate rose to Rs. 324.03, marking the first time it has exceeded the Rs. 324 threshold since January 2024. The buying rate stood at Rs. 316.40, maintaining its position above the Rs. 316 mark reached earlier this week. • Market Benchmarks: The SPOT exchange rate was recorded at Rs. 319.78 today, reflecting ongoing volatility after peaking at Rs. 319.93 on Monday. • Year-to-Date Performance: According to the Central Bank of Sri Lanka, the rupee has depreciated by 2.9% against the US Dollar as of April 30, 2026. • Economic Context: This shift impacts key sectors such as import-reliant manufacturing and energy, potentially increasing the cost of raw materials. Conversely, it may provide a marginal competitive edge for apparel & textiles and tea exports in terms of rupee-denominated earnings.
Asia Markets Hit Record Highs Amid AI Surge and Middle East De-escalation 📈
• Global Market Impact: Asian shares outside Japan jumped 2.3% to record highs, led by a 5.1% surge in South Korea's Kospi. Wall Street also hit fresh peaks with the S&P 500 rising 0.8%, driven by a massive rotation into tech and semiconductors. • Energy & Commodities: Brent crude fell 1.2% to US$ 108.51 per barrel following news of a pause in the Strait of Hormuz blockade and progress toward a U.S.-Iran agreement. Gold rose 1.2% to US$ 4,609.59. • Tech & AI Sector: South Korea’s Samsung Electronics surged 12%, surpassing a US$ 1 Tn market value. Demand for AI infrastructure continues to drive record earnings for Asian providers of hardware and industrial materials. • Currency & Forex: The U.S. Dollar index dipped 0.1% to 98.236 as risk appetite improved. The Australian dollar hit its highest level since 2022, while the Euro and Sterling both gained approximately 0.3%. • Economic Context: Easing energy tensions and heavy capex spend in the ICT/tech hardware ecosystem are creating significant value across Asian supply chains, providing a favorable tailwind for regional trade and materials exports.
Gold Rebounds to $4,543 Amid Inflation & Oil Price Pressures 📈
Gold prices stabilized on Wednesday, recovering slightly after a sharp 2% drop earlier in the week. While the precious metal regained some ground, gains remain restricted by rising crude oil prices and shifting US interest rate expectations. • Market Performance: Spot gold rose 0.5% to US$ 4,543.33 per ounce, while US gold futures for June delivery edged up 0.4% to US$ 4,553.10. • Economic Drivers: A rebound in crude oil has reignited global inflation fears, pushing US Treasury yields and the dollar higher. This environment typically reduces the appeal of non-interest-bearing assets like gold. • Sri Lankan Context: As a net importer of fuel and gold, higher global oil prices can pressure the trade balance, while gold price volatility impacts the jewelry sector and the value of gold-backed lending (pawning) within the banking and finance industry. • Outlook: Market sentiment remains cautious as investors weigh gold's role as an inflation hedge against the rising opportunity cost of holding the metal in a high-interest-rate environment. _Note: Based on spot market data as of May 6, 2026._
📈 Secondary Bond Yields Edge Up Amid Global Tensions
Sri Lanka’s secondary bond market saw yields rise for a second consecutive session as Middle Eastern tensions and high crude oil prices dampened investor sentiment. • Market Sentiment & Activity: Participants adopted a "wait-and-see" approach due to global uncertainty. Despite subdued activity, healthy transaction volumes were recorded via block trades driven by selling pressure. Total secondary market volume for May 4 stood at Rs. 6.79 Bn. • Key Bond Yield Highlights: • 2026 Maturities: 01.08.26 traded at 8.32%. • 2028 Maturities: Yields ranged between 9.75% and 9.85%. • 2030-2031 Maturities: Rates fluctuated between 10.20% and 10.27%. • Long-term (2033-2034): Yields climbed to the 11.00% - 11.29% range. • Treasury Bill Auction (May 6): A total of Rs. 100 Bn is on offer (Rs. 45 Bn for 91-day, Rs. 25 Bn for 182-day, and Rs. 30 Bn for 364-day tenors). This is notably lower than the estimated maturity of Rs. 126 Bn. • Liquidity & Forex: • Market liquidity surplus rose to Rs. 246.30 Bn. • The USD/LKR spot exchange rate closed slightly weaker at Rs. 319.90/320.40, compared to the previous day’s Rs. 319.60/320.00. • Daily forex traded volume reached US$ 55.30 Mn. _Note: Based on secondary market data and CBSL auction schedules._
CSE Ends in Red Amid Middle East Tensions 📉
The Colombo Bourse closed lower yesterday as escalating geopolitical conflict dampened investor sentiment, despite ongoing peace talk optimism. • Market Performance: The ASPI dropped 0.49% (110.70 points) to 22,584.30, while the S&P SL20 declined 0.50% to 6,213.24. • Liquidity: Market turnover stood at Rs. 2.1 Bn with 98 million shares traded. • Investor Activity: Foreign investors were net sellers with an outflow of Rs. 42 Mn. Participation from High Net Worth (HNW) and retail segments remained subdued. • Sector Highlights: - Banking: Contributed 17% to turnover; Commercial Bank led activity but saw its share price dip to Rs. 209.75. - Diversified Financials & Capital Goods: Combined for 32% of turnover. LB Finance closed flat at Rs. 155. - ICT/Tech: Digital Mobility Solutions Lanka defied the trend, gaining Rs. 2 to close at Rs. 155. • Key Laggards: CINS, CTHR, HAYL, SAMP, and HHL were the primary negative contributors to the indices. _Summary based on daily market provisional data._
📈 Secondary Bond Yields Edge Up Amid Geopolitical Tensions
The secondary bond market saw a marginal increase in yields as ongoing Middle East conflicts and rising crude oil prices dampened investor sentiment. Despite initial optimism from diplomatic talks, reports of an attack on a US warship led to a defensive, "wait-and-see" approach by market participants. • Market Yields & Activity Transaction volumes remained healthy, supported by several block trades. 15.12.26 maturity: Traded between 8.55% – 8.65%. 2030 maturities: 01.03.30 at 10.05% – 10.10%; 01.07.30 at 10.20% – 10.25%. Long-term maturities: 01.06.33 at 11.05% and 15.06.35 at 11.26%. Total bond/bill volume (April 30): Rs. 17.24 Bn. • Liquidity & Money Market Net liquidity surplus: Recorded at Rs. 226.55 Bn. Standing Deposit Facility (SDFR): Rs. 176.10 Bn deposited at 7.25%. CBSL absorption: Drained Rs. 50.45 Bn via overnight repo auction at a weighted average rate of 7.71%. • Forex Market The USD/LKR spot rate closed at Rs. 319.60/320.00, relatively stable compared to the previous day’s "spot next" close of Rs. 319.75/320.00. Total USD/LKR traded volume (April 30): US$ 97.99 Mn. _Data based on provisional reports from Wealth Trust Securities and CBSL._
📈 CSE Starts May on Positive Note with 0.65% Gain
The Colombo Stock Exchange (CSE) opened the month in green, driven by global optimism regarding US-Iran negotiations. While indices rose, the market saw significant foreign exits. • Overall Performance: The ASPI gained 145.47 points (+0.65%) to close at 22,695.00, while the S&P SL20 rose 37.08 points (+0.6%) to 6,244.64. Market turnover reached Rs. 4.8 Bn with 90.2 million shares traded. • Sector Highlights: • Food, Beverage & Tobacco: Led market turnover with a 56% share, gaining 1.30% as a sector. • Banking & Capital Goods: Collectively contributed 23% to turnover; the Banking index rose 0.70%. • Key Stock Movements: • Top contributors to turnover included NDB, DIAL, MELS, DOCK, and HARI. • CTC dominated turnover at Rs. 2.4 Bn (49.7% of total) despite a price dip to Rs. 1,800. • Significant gains were noted in HDFC (+Rs. 10.90) and Asiri Hospital Holdings (+Rs. 2.90). • Investor Sentiment: High Net Worth (HNW) participation was elevated, with crossings accounting for 57.8% of turnover. Retail interest remained subdued. • Foreign Inflows/Outflows: Foreign investors were net sellers with a daily outflow of Rs. 2.45 Bn, largely due to CTC. This brings the Year-to-Date (YTD) net foreign selling to Rs. 27.6 Bn.
📈 Global Oil Surges 3% Amid Strait of Hormuz Tensions
Global oil prices jumped over 3% on Monday following reports of military escalation between Iran and the U.S. in the strategic Strait of Hormuz, a critical chokepoint for global energy supplies. • Price Movements: Brent Crude futures rose by US$ 3.64 (+3.4%) to US$ 111.81 per barrel. U.S. WTI crude climbed US$ 3.40 (+3.3%) to US$ 105.34 per barrel. • Conflict Context: Prices spiked after Iran claimed to have struck a U.S. warship; however, U.S. Central Command has officially denied these reports. Tensions remain high as Iran warned of a "harsh response" to any U.S. presence in the waterway. • Supply & Logistics: • Shipping remains constrained near Fujairah, with reports of a tanker hit by unknown projectiles. • OPEC+ announced an output target increase of 188,000 bpd for June, though analysts suggest these gains may only exist "on paper" due to ongoing regional blockades. • Impact on Sri Lanka: As a net importer of fuel and energy, sustained prices above US$ 100/barrel place significant pressure on Sri Lanka's foreign exchange reserves and domestic inflation. Increased shipping risks in the Gulf may also affect the logistics and freight costs for vital imports and exports. _Data based on reports from Reuters and Fars as of May 4, 2026._
📈 Colombo Bourse Surges as Turnover Hits Rs. 4.8 Bn
The Colombo Stock Exchange (CSE) maintained a strong upward trajectory today, marked by significant index gains and robust trading activity driven by foreign interest. • Overall Market Performance: The All Share Price Index (ASPI) rose by 145.47 points (+0.65%) to close at 22,695. The S&P SL20 index followed suit, gaining 37.08 points to settle at 6,244.64. • Turnover Highlights: Daily turnover reached a substantial Rs. 4.8 Bn. A major driver was a strategic "crossing" in Ceylon Tobacco Company (CTC), which accounted for Rs. 2.38 Bn—nearly half of the day's total turnover. • Key Transaction Details: The CTC deal involved the trade of 1,341,170 shares at a price of Rs. 1,780.00 per share. Market sources report this was a high-value transaction executed between two foreign entities, signaling continued international interest in blue-chip Sri Lankan stocks. • Sector Impact: The heavy volume in the manufacturing and consumer goods sector (via CTC) provided the necessary liquidity to boost market sentiment, reflecting a stable outlook for high-dividend-yielding stocks.
📈 Secondary Bond Market Stabilizes Amid Improving Fiscal Fundamentals
Sri Lanka’s secondary bond market entered a consolidation phase last week, with yields holding steady as strong domestic fiscal performance offset geopolitical risks. • Market Sentiment & Liquidity: Sustained surplus liquidity in the money market crossed the Rs. 200 Bn mark, ending the week at Rs. 218.70 Bn. This increased liquidity helped maintain stability in short-end rates despite external pressures from Middle East tensions and crude oil prices. • Treasury Bill Auction Highlights: The weekly T-Bill auction saw a correction in the yield curve as the 91-day Bill yield dropped by 7 basis points (bps) to 8.20%. 182-day: 8.25% (+2 bps) 364-day: 8.52% (Unchanged) The auction was slightly undersubscribed, raising Rs. 136.94 Bn against an offered Rs. 140 Bn. • Key Yield Movements: Short-term: 2026 maturities traded between 8.15% - 8.40%. Medium-term: 2030-2031 tenors held between 10.18% - 10.25%. Long-term: 2034-2037 maturities traded between 11.15% - 11.25%. • Economic Indicators: Inflation: April CCPI accelerated to +5.40% YoY (from +2.20% in March), remaining within the CBSL target band. Foreign Holdings: Stabilized at Rs. 144.20 Bn after two weeks of inflows. Forex: The LKR depreciated slightly against the US Dollar, closing at Rs. 319.75/320.00. • Fiscal Note: Strong performance in January 2026 saw a sharp expansion in the primary surplus and the near-elimination of the overall budget deficit, providing a robust anchor for the financial services and banking sectors.
📈 Global Oil Prices Surge Past US$ 120 Amid Strait of Hormuz Tensions
Global energy markets hit a four-year peak as Brent crude briefly touched US$ 122 per barrel, the highest level since 2022. The price spike follows a 12-day steady climb triggered by the ongoing blockade of Iranian ports and the subsequent disruption of the Strait of Hormuz. • Price Dynamics: Brent crude surpassed US$ 120, a significant rebound from the US$ 90 recorded on 17 April following the brief Israel-Lebanon ceasefire. • Market Sentiment: High-level meetings between the US President and energy executives, including Chevron, suggest a prolonged disruption to global shipping and energy supply chains. • Geopolitical Impact: The US move to extend the blockade on Iran’s economy has led to Iranian threats to continue disrupting traffic through the Strait, a critical artery for global oil futures. • Economic Outlook: The World Bank forecasts a 24% surge in energy prices for 2026 if disruptions persist, potentially matching levels seen during the 2022 Ukraine crisis. • Regional Context: For Sri Lanka, this surge in global energy costs typically exerts pressure on foreign exchange reserves and increases the cost of thermal power generation and transportation. _Source: Based on provisional market data as of May 2026._
Brent Crude Jumps to $115 Amid Extended Iran Blockade 📈
Global oil benchmarks surged on Wednesday following reports of an "extended" U.S. blockade on Iranian ports, directly impacting global energy costs and Sri Lanka's import bills. • Market Impact: Brent crude rose to approximately US$ 115 per barrel, up from Tuesday’s close of US$ 110. Prices remain significantly higher than pre-conflict levels, despite a brief dip to US$ 90 earlier this month. • Supply Chain Risks: The Strait of Hormuz, which handles roughly 20% of global oil and LNG supply, remains effectively closed. Iran has threatened to target vessels, while the U.S. is actively intercepting ships to squeeze the Iranian economy. • Macro-Economic Outlook: The World Bank warns of a 24% surge in energy prices for 2026 if disruptions persist. This poses a significant risk to Sri Lanka's foreign exchange reserves and fuel prices, potentially impacting the transportation and manufacturing sectors. • Financial Markets: European stocks (FTSE 100, Stoxx) fell by 0.4% to 0.76% as investors reacted to the escalation. Conversely, Asian markets showed a slight recovery, though analysts warn that a quick reopening of the Strait is unlikely. _Data based on reports from the Wall Street Journal and BBC Verify as of April 29, 2026._
📈 Treasury Bill Yields Dip Amid Strong 3-Month Demand
Sri Lanka’s latest Treasury Bill auction showed a shift in momentum as the shorter tenor saw its first rate drop in seven weeks, supported by rising market liquidity. • Auction Results: The 91-day T-Bill yield dropped by 7 basis points to 8.20%. However, the 182-day yield rose marginally to 8.25% (+2 bps), while the 364-day rate remained flat at 8.52%. The auction was 90.64% subscribed, raising Rs. 126.90 Bn. • Market Liquidity: System liquidity increased for the 8th consecutive day, nearing the Rs. 250 Bn mark with a net surplus of Rs. 248.48 Bn. The Central Bank conducted an overnight Repo auction to drain Rs. 60 Bn at a weighted average rate of 7.70%. • Secondary Bond Market: Yields remained broadly steady as the market entered a consolidation phase. Sentiment was cautious due to geopolitical tensions in the Middle East. Notable trades included the 2028 maturity dropping to the 9.82%–9.80% range, while 2033 maturities traded at 11.00%. • Forex & Money Market: The Sri Lankan Rupee (LKR) weakened slightly against the US Dollar, closing at Rs. 319.75/320.50 compared to the previous day’s Rs. 319.00/320.00. Daily traded volume stood at US$ 48.25 Mn. _Note: Based on provisional data from Wealth Trust Securities and CBSL._
📈 CSE Records Fourth Consecutive Gain Amid Mixed Sentiment
The Colombo stock market ended in positive territory for the fourth straight session yesterday, though momentum remained subdued due to global oil price volatility and the UAE’s withdrawal from OPEC. • Market Performance Overview The All Share Price Index (ASPI) closed at 22,635, up 0.07% (+14.85 points), while the S&P SL20 rose 0.18% (+11.33 points) to end at 6,241.01. Despite the index gain, market breadth was negative with 135 decliners against 92 gainers. • Turnover and Liquidity Market turnover reached approximately Rs. 4.2 Bn with 214.3 million shares traded. Foreign investors remained net sellers, recording a net outflow of Rs. 332.5 Mn. • Sector Highlights • Diversified Financials: Led market activity with a 47% share of daily turnover. Janashakthi Limited (JXG) was a primary driver, with its share price rising by Rs. 3.70 to Rs. 13.70. • Banking & Capital Goods: Collectively contributed 20% to turnover. National Development Bank (NDB) saw institutional interest but closed down 0.10% at Rs. 112.50. • ICT/BPM & Services: Digital Mobility Solutions Lanka gained Rs. 1.75 to close at Rs. 152.50. • Top Contributors Key positive contributions to the index came from Ceylinco Insurance (CINS), Janashakthi Limited (JXG), Ceylon Beverage Holdings (BREW), Dialog Axiata (DIAL), and John Keells Holdings (JKH). Retail interest focused on small to mid-cap shares and the newly listed JXG, while high-net-worth participation remained at average levels.
Secondary Bond Market Holds Steady Ahead of Rs. 140 Bn T-Bill Auction 📈
Sri Lanka’s secondary bond market entered a consolidation phase, with yields remaining broadly unchanged for the second consecutive session. Market sentiment remains cautious due to elevated crude oil prices and Middle Eastern geopolitical tensions. • Secondary Bond Market Yields: Trades remained subdued as investors adopted a "wait-and-see" approach. 2026 maturity (01.08.26): 8.40% 2028 maturity (01.07.28): 9.71% - 9.75% 2030 maturity (01.07.30): 10.18% 2037 maturity (01.07.37): 11.25% • Treasury Bill Auction (Provisional): A total of Rs. 140.00 Bn is on offer today: Rs. 55 Bn (91-day), Rs. 45 Bn (182-day), and Rs. 40 Bn (364-day). This follows last week's auction where the 91-day yield rose 12 bps to 8.27%, while the 364-day rate held firm at 8.52%. • Liquidity and Money Market: Net liquidity surplus rose for the 7th straight day to Rs. 231.90 Bn. CBSL drained Rs. 40.00 Bn via overnight repo at a weighted average rate of 7.70%. Overnight call money and repo rates held steady at 7.72% and 7.77%. • Forex Market: The USD/LKR spot next contracts closed at Rs. 319.00/320.00, slightly weaker compared to the previous close of Rs. 319.00/319.25. Daily traded volume recorded at US$ 35.35 Mn.
Global Oil Surge: Brent Hits 3-Week High Amid Geopolitical Tension 📈
The international oil benchmark, Brent crude, surged 4.1% on Tuesday to reach a high of US$ 112.70 per barrel, crossing the US$ 110 threshold for the first time in three weeks. This price hike follows signals from the White House regarding stalled negotiations with Tehran and a continued blockade of the Strait of Hormuz. • Market Performance: Brent crude rose to US$ 112.70, while West Texas Intermediate (WTI) gained 4% to trade around US$ 100.17. Prices have escalated significantly from under US$ 60 at the start of 2026. • Geopolitical Drivers: The U.S. reiterated "red lines" regarding Iran's nuclear program despite a new proposal from Tehran. The ongoing eight-week conflict and the closure of the Strait of Hormuz continue to severely disrupt global energy supplies. • Economic Implications for Sri Lanka: As a net importer of refined petroleum and crude oil, rising global prices exert significant pressure on Sri Lanka's foreign exchange reserves and domestic inflation. Higher energy costs typically impact the manufacturing and transportation sectors, potentially raising the cost of production for exports like tea and apparel. • Global Outlook: The energy shock is driving up government bond yields globally (UK 10-year gilt yields exceeded 5%). Analysts warn that a prolonged closure of the Strait will have a sustained negative impact on the global economy and may force central banks to hike interest rates to combat inflation.
📈 Secondary Bond Yields Steady Amid Robust Fiscal Gains
The secondary bond market consolidated at steady levels as the week commenced, balanced between global geopolitical tensions and strong domestic fiscal performance. • Fiscal Performance (Jan 2026): Revenue and grants surged 35.3% YoY to Rs. 468.75 Bn. The primary surplus expanded by 86.7% YoY to Rs. 222.82 Bn, while the overall budget deficit contracted sharply by 97% YoY to just Rs. 3.81 Bn. • Money Market Liquidity: The net liquidity surplus crossed the Rs. 200 Bn mark for the sixth consecutive day, reaching Rs. 219.28 Bn. The Central Bank (CBSL) drained Rs. 25.00 Bn via overnight Repo at 7.70%, the first such move in 11 days. • Bond Market Activity: Trading remained defensive with limited volume (Rs. 5.66 Bn). - 15.12.28 maturity: 9.85% - 01.07.37 maturity: 11.25% • Forex Market: The LKR saw slight depreciation on spot next contracts, closing at Rs. 319.00/319.25 against the USD, compared to the previous close of Rs. 318.40/318.70. Daily traded volume stood at US$ 36 Mn. _Note: Based on provisional data from Wealth Trust Securities and CBSL._
📈 CSE Opens Week in Green Amid Resurgent Foreign Buying
The Colombo stock market started the week on a positive note, driven by net foreign inflows despite broader cautious sentiment linked to global geopolitical tensions. • Market Performance Overview The All Share Price Index (ASPI) rose by 0.20% (+44.68 points) to close at 22,612.31. The S&P SL20 index followed suit, gaining 0.16% (+9.94 points) to reach 6,214.56. • Trading Volume and Participation Market turnover reached approximately Rs. 3.0 Bn with over 141 million shares exchanged. Investor participation remained moderate, with 116 gainers narrowly outperforming 113 decliners. • Foreign Investor Activity Recorded a net foreign inflow of Rs. 242.25 Mn, marking only the third session of net buying this month. Year-to-date (YTD) net foreign buying now stands at Rs. 24.6 Bn. • Sector & Stock Highlights The Food, Beverage & Tobacco sector led turnover at 25%, while Capital Goods and Real Estate combined for another 25%. Key positive contributors to the index included Banking and Insurance counters such as SAMP, DFCC, and CINS, alongside DIAL and CARS. • Market Context Trading remained largely stagnant as investors maintained a cautious stance due to ongoing tensions between the US and Iran. Participation from both High Net Worth (HNW) and retail segments was described as subdued but slightly positive.
📈 Global Oil Prices Surge as US-Iran Peace Talks Stall
Global oil benchmarks rose by over 1% on Monday, driven by heightened geopolitical tensions and supply constraints in the Middle East. This price hike follows significant weekly gains of 17% for Brent and 13% for WTI, the largest since the conflict's onset. • Overall Market Figures: • Brent crude futures: $106.68 a barrel (up 1.3% or $1.35). • US West Texas Intermediate (WTI): $95.35 a barrel (up 1% or 95 cents). • Supply Disruptions: • Shipping remains severely restricted through the Strait of Hormuz; shipping data shows only one tanker entered the Gulf on Sunday. • A US blockade of Iranian ports and Tehran’s closure of the strait continue to keep global supplies tight. • Geopolitical Drivers: • Peace efforts receded after US President Donald Trump canceled envoy trips to Islamabad. • Elevated "war premiums" are being fueled by aggressive rhetoric regarding maritime security in the Persian Gulf. • Economic Outlook: • Goldman Sachs has raised Q4 forecasts to $90 for Brent and $83 for WTI. • Analysts warn of "unprecedented shocks" including refined product shortages and high prices, which may impact energy-dependent sectors like transportation and manufacturing in emerging economies like Sri Lanka.
Global Energy & Tech Shift: Oil Hits $107.97 as AI Optimism Surges 📈
• Energy Market Volatility: Brent crude futures jumped 2% to a three-week high of US$ 107.97 per barrel following stalled U.S.-Iran peace talks. The continued closure of the Strait of Hormuz remains a critical bottleneck for global energy exports. • Inflationary Pressures: High oil prices have prompted traders to price out potential interest rate cuts in developed markets for 2024. Goldman Sachs has revised year-end Brent forecasts upward to US$ 90, warning of "non-linear" price spikes if inventories hit critical lows. • Sector Performance: • Technology & Chips: Markets in Taiwan, Tokyo, and Seoul reached record highs driven by AI spending optimism. Positive revenue forecasts from companies like Intel have pushed chip-heavy markets to values exceeding Germany’s total market cap. • Petroleum Products: Regional impact is visible in Singapore, where jet fuel prices have reached US$ 185 per barrel, adding pressure to aviation and logistics costs. • Monetary Policy Outlook: Major central banks, including the Federal Reserve, ECB, and Bank of England, are expected to maintain current interest rates this week. The Bank of Japan is projected to hold its policy rate at 0.75%. • Regional Impact: For Sri Lanka, the persistent rise in global energy costs and LNG prices (up 61% from pre-war levels to US$ 16.70 per MMBtu) signals continued pressure on foreign exchange reserves and domestic energy pricing, despite the growth in global ICT/BPM sentiment. _Note: Based on provisional market data and analyst forecasts._
CSE Ends Week Down 0.9% Amid Global Tensions 📉
The Colombo stock market closed a volatile week in the red, as investor sentiment remained cautious due to rising geopolitical uncertainties. • Market Performance: The ASPI dropped by 0.9% (205.7 points) to end at 22,567.63, while the S&P SL20 fell by 59.3 points over the week. • Foreign Investment: Net foreign outflows for the week exceeded Rs. 2.6 Bn, pushing the year-to-date (YTD) net outflow to Rs. 24.9 Bn. • Daily Activity: Daily turnover reached Rs. 2 Bn with 120 million shares traded. Foreigners remained net sellers with a daily outflow of Rs. 31 Mn. • Sector Contributions: Capital Goods led turnover at 17%. Food, Beverage & Tobacco and the Banking sectors followed, contributing a combined 31%. • Top Gainers: Positive contributions were noted from CINS, CTC, COMB, JKH, and MELS. Market analysts attribute the dull sentiment and subdued participation from retail and high-net-worth investors to global instability stemming from US–Iran tensions.
Global Market Alert: Asia Shares Mixed as US-Iran Tensions Push Oil Higher 📈
• Market Sentiment: Asian equities showed mixed performance on Friday amid a shaky Middle East ceasefire and stalled U.S.-Iran peace talks. While the MSCI Asia-Pacific index rose 0.3% (up 0.8% for the week), markets in China, Hong Kong, and South Korea recorded losses. • Energy & Commodities: Oil prices rose due to a stand-off in the Strait of Hormuz. Brent crude jumped over 1% to US$ 106.21 per barrel, while U.S. crude gained 1% to US$ 96.77. These rising energy costs pose a risk of "demand destruction" for global economies. • Currency & Inflation: The Japanese Yen hovered near the critical 160 per dollar mark, prompting intervention warnings. Major central banks (Fed, ECB, BoE) meet next week to assess the war's impact on inflation, which could influence future interest rate decisions affecting export-driven markets. • Sri Lankan Context: As an oil-importing nation, the rise in Brent crude toward US$ 106 and global shipping tensions in the Strait of Hormuz may pressure domestic fuel prices and impact the cost of logistics for key sectors like apparel & textiles and tea exports.
Bond Yields Consolidate Amid Rising Market Liquidity 📈
The secondary bond market maintained a steady stance for the fourth consecutive session, reflecting a consolidation phase as participants adopted a wait-and-see approach due to mixed geopolitical signals. • Secondary Bond Market Yields remained broadly stable across selected tenors with subdued trading activity. Key trades included: • 01.05.27 maturity: Yields eased slightly to 8.83%–8.89%. • 01.03.30 maturity: Traded at 10.04%. • 15.06.34 maturity: Recorded at 11.19%. • Total transacted volume (April 22): Rs. 36.95 Bn. • Money Market Liquidity System liquidity continued its upward trend for a fifth straight day, reaching a net surplus of Rs. 167.46 Bn. • SDFR (7.25%): Rs. 182.06 Bn deposited. • SLFR (8.25%): Rs. 14.60 Bn withdrawn. • Weighted average rates for call money and repos held steady at 7.71% and 7.72%. • Forex Market The USD/LKR spot next contracts closed at Rs. 318.25/319.00, showing a slight depreciation from the previous day's spot close of Rs. 316.75/317.00. The daily traded volume stood at US$ 52.25 Mn.
CSE Ends Two-Day Rally as Global Tensions Weigh on Market Sentiment 📈
The Colombo Bourse closed in negative territory yesterday, snapping a two-session gaining streak as geopolitical uncertainties regarding US–Iran tensions dampened investor confidence. • Market Performance: The All Share Price Index (ASPI) dropped by 0.32% (73.23 points) to close at 22,566.58, while the S&P SL20 edged down 0.13% to 6,205.73. • Trading Activity: Market turnover reached Rs. 2.8 Bn with 126 million shares traded. Market breadth was negative, with 145 losers against 76 gainers. • Foreign & Institutional Interest: Foreign investors were net buyers for only the second time this month, recording a thin net inflow of Rs. 3.4 Mn. High-net-worth and institutional participation focused on Ceylon Cold Stores, Overseas Realty, and Access Engineering. • Sector Highlights: • Food, Beverage & Tobacco: Led turnover (20% share). Ceylon Cold Stores gained Rs. 3.25 to close at Rs. 117.25. • Capital Goods: Second highest contributor. Access Engineering saw a slight decline to Rs. 76.50. • Banking & Real Estate: Mixed sentiment; Overseas Realty rose 3.01% to Rs. 47.90, while SAMP was a top negative contributor to the ASPI. • Outlook: Investors are adopting a "wait-and-see" approach due to potential economic impacts from global volatility, with retail activity remaining subdued.
Yields Broadly Steady Amid Geopolitical Shifts & Fully Subscribed Auction 📈
The secondary bond market remained stable yesterday despite shifting geopolitical signals, while the primary T-Bill auction saw a full subscription of the offered Rs. 110 Bn. • T-Bill Auction Results The auction showed mixed movements, breaking a 4-week trend of across-the-board increases: 91-day: Rose by 12 bps to 8.27% 182-day: Rose by 1 bp to 8.23% 364-day: Remained unchanged at 8.52% Subscription: Robust demand with a bid-to-cover ratio of 2.41x. • Secondary Bond Market Trading activity remained healthy with a total transacted volume of Rs. 36.95 Bn. Key maturities traded as follows: 2027: 15.06.27 at 9.05% 2028: Range of 9.65% to 9.90% 2034: 15.06.34 traded between 11.13% - 11.17% • Liquidity & Forex The market's net liquidity surplus increased to Rs. 151.01 Bn, reflecting a stable banking and finance environment. Overnight call money and repo rates stood at 7.70% and 7.71% respectively. In the Forex market, the Rupee weakened slightly, with the USD/LKR spot closing at Rs. 316.75/317.00 compared to the previous close of Rs. 316.40/316.70. Total traded volume was US$ 84 Mn. _Data based on provisional reports from CBSL and Wealth Trust Securities._
CSE Closes in Green Despite Heavy Foreign Outflows 📈
• Market Performance: The Colombo Stock Exchange ended marginally higher for the second consecutive day. The ASPI gained 0.06% (+14.33 points) to close at 22,639.81, while the S&P SL20 dipped 0.14% to 6,213.84. Market turnover reached Rs. 5.2 Bn with 155.5 Mn shares traded. • Foreign Investor Activity: Following a brief pause, foreign investors returned to a net selling position with a significant outflow of Rs. 2.52 Bn. Major selling was concentrated in Softlogic Life (Rs. 1.2 Bn), Ceylon Tobacco (Rs. 891 Mn), and Hayleys Fabric (Rs. 292.6 Mn). • Sector Highlights: • The Insurance sector dominated market activity, accounting for 34% of total turnover. • Food, Beverage & Tobacco and Banking sectors collectively contributed 32%. • Softlogic Life (AAIC) led individual turnover at Rs. 1.5 Bn, bolstered by a Rs. 1.3 Bn crossing. • Top Movers & Sentiment: • Primary gainers included JINS (+9.0%), MGT (+2.3%), and ACL (+1.9%). • Major laggards were HNBN and HAYL. • Overall sentiment remained cautious due to geopolitical uncertainties surrounding US-Iran peace talks. While High Net Worth (HNW) participation was high—with crossings representing 47.3% of turnover—retail activity remained muted. • Market Breadth: Positive, with 120 gainers versus 101 decliners. Market P/E stood at 11.56.
CSE Rebounds as Foreigners End 21-Day Selling Streak 📈
The Colombo Bourse ended in positive territory yesterday, driven by renewed optimism surrounding Middle East peace talks and a reversal in foreign investment trends. • Market Performance: The ASPI gained 0.25% (+55.45 points) to close at 22,625.48, while the S&P SL20 remained nearly flat, down a marginal 0.01%. Turnover reached over Rs. 3.5 Bn with 360 million shares traded. • Foreign Interest: After 21 consecutive sessions of selling, foreign investors emerged as net buyers with a modest inflow of Rs. 19.8 Mn. Despite this, April remains in a net outflow position of ~Rs. 2.6 Bn, though YTD net inflow stands strong at ~Rs. 22.4 Bn. • Sector Highlights: - Consumer Services: Led market turnover (29%), supported by high activity in Citrus Leisure and Hikkaduwa Beach Resort. The sector index rose 0.51%. - Diversified Financials: The second highest contributor, gaining 0.85% in its sector index, led by Softlogic Finance and Softlogic Capital. - Capital Goods: Along with financials, contributed a combined 28% to total turnover. • Key Contributors: Top positive index drivers included CINS, BUKI, CFIN, MELS, and NHL. While retail participation was high, activity from High Net Worth (HNW) and institutional investors remained subdued, focusing on ACL Cables and Hemas Holdings.
Sri Lanka Bond Yields Consolidate Amid Geopolitical Uncertainty 📈
The secondary bond market yields held steady for a second session as investors adopted a defensive "wait-and-see" stance. Market sentiment remains cautious due to Middle Eastern geopolitical tensions and elevated crude oil prices. • Market Performance & Yields • Secondary market activity was muted with a sideways bias. • 01.08.26 maturity: Traded at 8.40%. • 15.09.27 maturity: Traded at 9.00%. • 2029 tenors: Rates dropped due to concentrated demand, with 15.10.29 trading at 10.00%-9.95%. • 01.03.30 maturity: Traded at 10.07%. • Treasury Bill Auction (22nd April) • Total of Rs. 110 Bn on offer today across three tenors: • 91-day: Rs. 45 Bn • 182-day: Rs. 35 Bn • 364-day: Rs. 30 Bn • Previous auction (last week) saw yields rise for the fourth consecutive week, with the 91-day yield increasing 20 bps to 8.15%. • Liquidity & Forex • Net liquidity surplus: Rs. 123.32 Bn. • USD/LKR: The spot rate closed slightly lower at Rs. 316.50/316.75 (vs Rs. 316.40 previous). • Forex volume: US$ 66.75 Mn (as of 20 April). • Key Rates • Overnight Call Money: 7.68% • Repo Rate: 7.70% • Standing Deposit Facility (SDFR): 7.25%
Foreign Investors Reverse 21-Day Selling Streak on CSE 📈
Foreign investors in the Colombo Stock Exchange (CSE) shifted to net buyers yesterday, snapping a continuous 21-session selling period. • Market Movement: The market recorded a net foreign inflow of Rs. 19.8 million yesterday, marking a brief recovery in investor sentiment. • Monthly & Yearly Totals: Despite the daily reversal, the broader trend remains cautious. Net foreign outflow for April stands at approximately Rs. 2.6 billion, while the Year-to-Date (YTD) net outflow has reached nearly Rs. 22.4 billion. • Index Performance: • ASPI: Up 7.40% so far in April; YTD gain is a marginal 0.01%. • S&P SL20: Up 5.39% in April, though it remains down 1.06% YTD. _Note: Based on provisional market data._
📈 Colombo Stock Exchange: Mixed Trends at Tuesday’s Close
The Colombo stock market reflected a diverged performance today, with the primary index gaining ground while blue-chip stocks remained flat. • Index Performance: The All Share Price Index (ASPI) rose by 55.45 points (0.25%) to close at 22,625.48. In contrast, the S&P SL20 Index, which tracks the most liquid stocks, edged down marginally by 0.33 points to finish at 6,222.46. • Market Liquidity: Total market turnover for the session reached LKR 3.56 billion, indicating steady trading activity across the board. • Economic Context: The uptick in the ASPI suggests continued investor interest in broader market segments, including diversified holdings and banking, while the slight dip in the S&P SL20 reflects a momentary consolidation in the blue-chip sector. _Data based on daily market closing reports for April 21, 2026._
Asian Markets Rally as AI Optimism Counters Geopolitical Tensions 📈
Asian equities surged on Monday as strong performance in the ICT/BPM and semiconductor sectors offset investor anxiety over Middle East conflicts. Global focus shifted toward corporate fundamentals and the resilience of the artificial intelligence trade. • Regional Performance: • Japan: The Nikkei 225 rose 0.60% to close at 58,824.89, nearing record highs. • South Korea: The KOSPI gained 0.44%, driven by an eightfold profit increase at Samsung Electronics. • Regional Index: The MSCI Asia Pacific Index climbed up to 0.8%, erasing losses from the two-month Iran conflict. • Sector Breakthroughs: • Semiconductors: Taiwan Semiconductor (TSMC) raised its 2026 revenue outlook due to high demand for AI chips. • Technology: The "Magnificent Seven" tech giants saw a 20% recovery from March lows, providing a buffer against rising energy costs. • Economic Context: • Energy: Brent crude rose 5.6% to US$ 95.48 per barrel following renewed shipping restrictions in the Strait of Hormuz. • Inflation: US Producer Price Index (PPI) for March rose only 0.5% month-on-month, easing fears that energy shocks have broadened into underlying inflation. • Market Sentiment: Trading volumes remained roughly 33% below monthly averages as investors maintain a "wait-and-see" approach ahead of key earnings reports from SK Hynix and Intel.
Bond Yields Consolidate Amid External Pressures; Rupee Softens 📈
The secondary bond market started the week with yields holding steady as investors maintained a defensive "wait-and-see" stance. Market sentiment was primarily anchored by geopolitical tensions in the Middle East and elevated crude oil prices. • Secondary Bond Market: Activity remained subdued with thin volumes, though supported by intermittent block trades. Key traded maturities included: 01.08.26: 8.40% 15.03.28: 9.50% 01.07.28: 9.65% 15.06.29: 9.92% – 9.97% 15.10.29: 10.00% 01.07.30: 10.16% The total transacted volume for Treasury Bonds/Bills reached Rs. 9.50 Bn on April 17. • Market Liquidity: The system recorded a net liquidity surplus of Rs. 112.44 Bn. Financial institutions deposited Rs. 138.44 Bn at the Central Bank’s SDFR (7.25%), while SLFR (8.25%) withdrawals totaled Rs. 26.00 Bn. Weighted average rates for call money and Repo stood at 7.67% and 7.70% respectively. • Forex Market: The Sri Lankan Rupee (LKR) saw slight depreciation against the USD, closing at Rs. 316.40/90 compared to the previous close of Rs. 316.55/70. The total USD/LKR traded volume stood at US$ 56.75 Mn. _Data based on provisional reports from Wealth Trust Securities and CBSL._
📉 CSE Opens Week in Red Amid Middle East Tensions
The Colombo bourse started the week on a negative note yesterday, primarily driven by heightened geopolitical conflicts and rising global oil prices. • Market Performance Overview: The benchmark ASPI dropped by 0.89% (203.26 points) to close at 22,570.03. The S&P SL20 fell 0.66% (41.15 points) to 6,222.79. Market turnover reached over Rs. 4.1 Bn with 257.7 million shares traded. • Investor Activity: Foreign investors recorded a net outflow of Rs. 78.5 Mn. While high-net-worth (HNW) participation was low, retail activity remained elevated, particularly in trading stocks. • Sector & Stock Highlights: Capital Goods: Led turnover (19% share) but saw a sector index dip of 0.51%. Notable moves included Softlogic Holdings (+Rs. 0.60) and John Keells Holdings (flat). Banking & Diversified Financials: Contributed 27% to turnover. Softlogic Finance rose to Rs. 8.90, while Softlogic Capital declined. Tourism: Mixed interest observed in Hikkaduwa Beach Resort (+Rs. 0.80) and Waskaduwa Beach Resort. • Key Laggards: The primary negative contributors to the ASPI were RIL Property, CT Holdings, Dialog Axiata, Commercial Bank, and Browns Investments. _Source: Based on market data from April 20, 2026._
Global Markets Retreat as Mideast Tensions Surge 📈
Wall Street eased from record highs on Monday as heightened tensions in the Strait of Hormuz threatened the fragile US-Iran ceasefire. The Nasdaq is currently on track to snap a 13-day winning streak. • Market Performance: • Dow Jones: ⬇️ 0.23% to 49,336.11 • S&P 500: ⬇️ 0.25% to 7,108.27 • Nasdaq: ⬇️ 0.41% to 24,368.49 • Energy & Commodities: • Crude Oil: US crude jumped 5.15% to US$ 88.21 per barrel; Brent rose 4.96% to US$ 94.86. • Gold: Prices softened slightly, with spot gold falling 0.31% to US$ 4,813.55 per ounce as Treasury yields edged higher. • Currency & Yields: • US Dollar Index: ⬇️ 0.3% to 98.16. • 10-Year Treasury Yield: ⬆️ to 4.266%. • Economic Impact: For Sri Lanka, the spike in global oil prices remains a critical factor for energy costs and transportation, while geopolitical instability in the Middle East poses risks to remittances and trade logistics through key maritime routes. European shares also slid following Iran's refusal to engage in further negotiations.
Secondary Bond Market Steady as Geopolitical Tensions Ease 📈
The Sri Lankan secondary bond market closed the week steady to marginally lower, buoyed by optimism regarding a potential diplomatic resolution to US–Iran tensions and stabilizing oil prices. • Market Trends & Yields: Yields saw compression particularly in liquid 2029–2034 tenors. Key trades included: 2027 tenors: 8.75% – 8.83% 2029 tenors: 9.90% – 10.05% 2034 tenors: 11.09% – 11.15% • Treasury Bill Auction: T-bill yields rose for the fourth consecutive week. The 91-day bill increased by 20 bps to 8.15%, while 182-day and 364-day bills rose to 8.22% and 8.52% respectively. The auction raised Rs. 84.04 Bn against an Rs. 90 Bn offer. • Foreign Holdings & Liquidity: Foreign Holdings: Recorded a net inflow for the first time in seven weeks (Rs. 2 Mn), bringing the total to Rs. 142.92 Bn. Market Liquidity: Inter-bank surplus remained healthy at Rs. 106.32 Bn. • Currency & Forex: The USD/LKR spot rate depreciated slightly, closing at Rs. 316.55/316.70 compared to the previous week's Rs. 315.50/315.60. Daily average volumes stood at US$ 88.38 Mn.
📈 Global Markets Rally as Oil Drops Below US$ 100 on Peace Hopes
Global equity markets are poised for a second week of gains as investor optimism rises regarding a resolution to Middle East tensions. Despite the continued closure of the Strait of Hormuz, diplomatic breakthroughs have shifted market sentiment toward a "pre-war" recovery phase. • Energy Prices: Brent crude fell over 1% to US$ 98.14 per barrel, while U.S. WTI dropped 1.6% to US$ 93.15. This easing follows a 10-day ceasefire in Lebanon and potential high-level U.S.-Iran talks. • Equity Performance: The MSCI Asia-Pacific index is up 14.5% in April, recovering nearly all losses from the March slump (-13.5%). While Japan’s Nikkei saw a minor 0.9% dip after hitting record highs, U.S. markets (S&P 500 and Nasdaq) continue to close at record peaks. • Currency & Macro Risks: The U.S. Dollar Index remains near its lowest levels since early March (98.24) as safe-haven demand cools. However, analysts warn of "market complacency" given the IMF’s recent downgrade of global growth and the risk of recession if the waterway remains closed. • Impact Context: For Sri Lanka, sustained oil prices below US$ 100 is critical for managing energy costs and stabilizing inflation. However, the reopening of shipping lanes remains the primary catalyst needed to secure long-term stability for the export and logistics sectors.
📈 Colombo Bourse Surges Amid Robust Trading Activity
The Colombo Stock Exchange (CSE) recorded a strong performance today (16 April 2026), driven by a sharp uptick in investor participation and market momentum. • Market Indices: The All Share Price Index (ASPI) jumped by 327.49 points to close at 22,588.97, a 1.47% increase. The S&P SL20 Index climbed 55.77 points (0.90%) to end the day at 6,230.76. • Liquidity & Turnover: Market turnover reached Rs. 4.96 billion, reflecting a significant surge compared to recent sessions. This spike indicates a notable shift toward renewed investor confidence and higher trading volumes. • Economic Context: The day's gains highlight a broad-based recovery in sentiment within the capital markets, supported by heavy trading activity and improved market liquidity. _Note: Summary based on provisional daily market data._
📈 CSE Weekly Rally: Market Value Surges by Rs. 401 Bn
The Colombo Bourse ended the week on a strong bullish note, driven by optimism regarding upcoming US–Iran peace talks and the IMF staff-level agreement on the 5th and 6th reviews of the EFF. • Market Performance ASPI: Up 4.78% (+1,011.24 points) to close at 22,128.66. S&P SL20: Gained 4.71% (+277.04 points) to end at 6,152.73. Weekly Value Gain: Rs. 401 Bn. Daily Turnover: Over Rs. 5.0 Bn with 262 Mn shares traded. • Sector & Stock Highlights Diversified Financials: Led daily turnover (21%), with LB Finance (+6.9%) and Ceylon Land & Equity seeing high volume. Capital Goods: Second highest contributor; John Keells Holdings (+3.1%) was a major index driver. Banking: Strong gains in NDB (+3.7%), DFCC (+2.6%), and Commercial Bank. Other Top Contributors: Melstacorp, Dialog Axiata, and Access Engineering. • Investor Sentiment Foreign Interest: Net foreign outflows of over Rs. 2.0 Bn for the week (Rs. 75.8 Mn yesterday). Participant Mix: High Net Worth (HNW) and institutional participation were elevated in blue-chip counters, while retail activity remained average. Market Breadth: Heavily positive with 195 gainers against 53 decliners.
📈 Global Oil Prices Edge Up Amid Supply Disruptions
Oil prices saw a slight recovery on 10 April 2026 as supply constraints offset recent weekly losses. While benchmarks rose, they remain down approximately 11% for the week, marking the sharpest decline since June 2025. • Global Benchmarks: Brent crude rose by 0.6% to US$ 96.50 per barrel, while West Texas Intermediate (WTI) increased by 0.5% to US$ 98.36. • Supply Disruptions: Strikes on Saudi energy facilities reduced output by 600,000 bpd and cut pipeline flows by 700,000 bpd. This tightening of supply is critical for Sri Lanka’s energy sector and import costs. • Logistics Constraints: Tanker traffic through the Strait of Hormuz remains below 10% of normal levels due to US-Iran tensions, severely impacting global maritime logistics and transit routes. • Economic Context: For Sri Lanka, these fluctuations in global fuel prices directly impact inflation and foreign exchange reserves, as the country remains heavily dependent on imported petroleum products for transportation and power generation.
Rs 100 Bn Bond Auction Sees Cautious Participation Amid Global Tensions 📈
The Central Bank’s latest Treasury bond auction concluded with an undersubscription, raising Rs 82.09 Bn out of a total Rs 100 Bn offered. Investor sentiment remained conservative, largely influenced by external headwinds from US-Iran tensions. • Auction Outcomes: 01.07.30 Maturity: Fully accepted at the 1st phase with a weighted average yield of 10.12%. 15.06.34 Maturity: Undersubscribed; weighted average yield of 11.16%. 01.07.37 Maturity: Undersubscribed; weighted average yield of 11.19%. The bids received to accepted ratio stood at 1.80 times. • Secondary Market & Forex: Secondary bond activity was subdued with the 01.05.27 maturity trading at 8.70% and the 15.12.32 at 10.85%. The USD/LKR spot rate closed slightly weaker at Rs 315.60/315.90, compared to the previous day’s Rs 315.30/315.40. Daily traded volume for forex was US$ 128.20 Mn. • Market Liquidity: The money market maintained a high net liquidity surplus of Rs 239.96 Bn. Overnight call money and Repo rates remained stable at 7.63% and 7.66% respectively. _Note: A 10% issuance window remains open for the 2030 tenor until 3:00 PM today._
📉 CSE Ends in Red Amid Middle East Tensions
The Colombo Bourse closed lower today as geopolitical uncertainties outweighed positive domestic developments from the IMF. • Market Performance: The ASPI declined by 0.33% (-73.06 points) to end at 21,844.54, while the S&P SL20 dropped 0.24% (-14.32 points) to 6,076.18. • Turnover & Volume: Daily turnover reached Rs. 2.97 Bn with 133.3 Mn shares traded. • Foreign Activity: Net foreign outflow stood at Rs. 221.4 Mn today, contributing to a total weekly net outflow of Rs. 1.9 Bn. • Sector Highlights: Capital Goods led market turnover (30%), followed by Food, Beverage & Tobacco and Banking, which together accounted for 27%. • Key Drivers: Initial losses were triggered by the breach of the US-Iran ceasefire agreement. However, the market saw a partial late-session recovery following news of a staff-level agreement with the IMF on the 5th and 6th reviews of the Extended Fund Facility. • Top Drags: Major negative contributors included CINS, DIAL, JKH, MELS, and CTHR. High Net Worth participation was noted in blue-chip counters despite overall subdued sentiment.
Global Markets Rebound as Mid-East Tensions Ease; Oil Rally Cools 📈
Global equity markets stabilized on Thursday following signals of potential de-escalation in the Middle East, offering a reprieve for energy-sensitive economies like Sri Lanka. • Market Performance MSCI All-Country World Index: Up 0.27% Dow Jones: +0.59% (48,191.74) S&P 500: +0.63% (6,825.27) Nasdaq: +0.76% (22,807.95) Asian markets saw a slight pullback, with the Nikkei falling 0.7% and MSCI Asia-Pacific slipping 0.7%. • Energy & Commodities Crude Oil: US crude settled at US$ 97.71 (+3.4%) after briefly topping US$ 102. Brent eased to US$ 95.50 (+0.8%). Gold: Surged 1.63% to US$ 4,793.07/oz as investors maintain interest in safe-haven assets. Silver: Gained 2.66% to US$ 76.09. • Economic Indicators US Core PCE Index: Rose 2.8% YoY in February, meeting expectations. US GDP: Q4 growth slowed to 0.5%, trailing the 0.7% forecast. Currency: The US Dollar Index fell 0.37% to 98.69, while the Euro rose 0.43% to $1.1712. • Regional Impact Market sentiment shifted positively after Israel indicated openness to peace talks with Lebanon. For Sri Lanka, the cooling of the oil rally is critical to managing energy costs and stabilizing import expenditure, though global inflation risks remain a key watchpoint ahead of upcoming US CPI data.
US-Iran Ceasefire Sparks Relief Rally in Secondary Bond Market 📈
A sudden geopolitical shift saw Secondary Bond Market yields decline sharply following the announcement of a US-Iran ceasefire. The news triggered a 15% plunge in Brent crude to approximately $90 per barrel, easing domestic inflationary and exchange rate concerns. • Market Performance & Yields The rally saw yields on key maturities drop mid-session before profit-taking and T-Bill auction results caused a marginal retracement. 15.02.28 maturity: Traded at 9.25% 01.07.30 maturity: Range of 9.95%–9.87% 01.06.33 maturity: Touched a low of 10.85% before closing at 10.98% • Primary Auction & Liquidity Despite the secondary market rally, T-Bill yields rose for the third consecutive week. The Rs. 30 Bn auction was fully subscribed with the 91-day Bill rising 15 bps to 7.95%. A major Rs. 100 Bn T-Bond auction is scheduled for today (09.04.2026). Net Liquidity Surplus: Rs. 237.26 Bn Overnight Call Money: Weighted average at 7.63% • Forex & External Sector The Rupee strengthened slightly, closing at Rs. 315.30/40 against the USD. Positive sentiment is bolstered by imminent IMF Staff Level approval, with Sri Lanka on track to receive US$ 700 Mn by end-May. • Stock Market & Global Trends The bond rally mirrored gains in the local equity market and global financial sectors, driven by the reopening of the Strait of Hormuz and improved global risk appetite.
CSE Records Historic Single-Day Gain Amid Mideast Peace Hopes 📈
The Colombo Stock Exchange (CSE) achieved its highest single-day gain in history yesterday, fueled by optimism following ceasefire announcements in the Middle East and easing global oil prices. • Market Performance Overview ASPI: Up 4.21% (+885.14 points) to close at 21,917.60. S&P SL20: Up 4.42% (+257.68 points) to close at 6,090.50. This rally surpasses the previous record of 797.72 points set on March 25, 2026. • Sector & Stock Highlights The Banking sector dominated activity, contributing 24% of the daily turnover. Capital Goods and Food, Beverage & Tobacco collectively accounted for 33%. Top positive contributors included JKH, COMB, HNB, DIAL, and DOCK. • Liquidity & Investor Sentiment Market Turnover: Rs. 6.6 Bn with 248 million shares traded. Market Breadth: Strongly positive with 246 gainers against 16 decliners. Investor Profile: Increased participation from HNW and retail investors; however, foreign investors remained net sellers with an outflow of Rs. 612.4 Mn. • Economic Context The surge is attributed to the announcement of US-Iran peace talks, which bolstered international capital markets. Locally, this reflects improved investor confidence in equity markets as a reaction to stabilized global energy costs.
📈 Sri Lanka’s Recipe for Capital Market Growth
A strategic shift toward deepening the capital market is essential to secure fast-moving foreign inflows and reduce reliance on slow-moving FDI. • The Scale Gap Sri Lanka’s market cap is currently only ~US$ 27 Bn (approx. 20-25% of GDP), significantly lagging behind regional peers like India (139% of GDP) and Japan (180% of GDP). This low depth prevents large institutional investors from deploying capital without distorting prices. • The Valuation Paradox Despite a low Price-to-Earnings (P/E) ratio of ~10 (compared to India’s ~25), global funds remain sidelined due to poor liquidity and a lack of investable companies. • Strategic Recommendations SOE Listings: Partially listing state-owned enterprises in banking, utilities, insurance, and infrastructure to increase market depth and transparency while maintaining state control. Aviation Reform: Restructuring SriLankan Airlines by cleaning its balance sheet to transform it from a debt burden into an investable growth story. Port City Colombo: Leveraging its Special Economic Zone (SEZ) to host an international stock exchange, mimicking Hong Kong’s model to attract global listings and capital. • Economic Outlook With current P/E advantages and the strategic positioning of Port City, Sri Lanka has a window to capture diversifying global capital if it implements bold reforms in governance and liquidity.
Global Oil Prices Plunge Below $100 Following US-Iran Ceasefire 📈
Global energy markets experienced a sharp correction on Wednesday as oil prices retreated from record highs following the announcement of a two-week ceasefire between the United States and Iran. • Price Movement: Brent futures crashed 14.9% (US$ 16.32) to US$ 92.95 per barrel. WTI crude saw a steeper decline of 16.1% (US$ 18.16) to settle at US$ 94.79. This follows a historic March where prices rose over 50% due to conflict. • Geopolitical Context: President Trump confirmed a 14-day "double-sided ceasefire" contingent on the immediate reopening of the Strait of Hormuz. This critical maritime chokepoint handles roughly 20% of global oil transit. • Market Impact: For Sri Lanka, a net oil importer, this cooling of prices offers potential relief for energy costs and transportation logistics, which have been pressured by recent volatility. • Future Outlook: Analysts from ING and MST Marquee warn that while the 10-point proposal is a "workable basis" for peace, volatility remains high. A permanent reduction in the "geopolitical premium" depends on the transition from a temporary pause to a durable, long-term agreement. _Note: Based on provisional market data at 0630 GMT._
📉 NDB Bank Shares Plunge 15% Following Trading Halt
• Banking Sector Performance: National Development Bank (NDB) shares fell 15.13% (Rs. 19.75) to close at Rs. 110.75. This follows a trading suspension triggered by a reported Rs. 13.2 billion fraud. • Market Impact: Despite the sharp decline, NDB dominated market activity, with 4.1 million shares traded. The bank generated Rs. 455 million in turnover, accounting for over 24% of the day’s total market turnover of Rs. 1.8 billion. • Index Contribution: NDB was the largest negative contributor to the All Share Price Index (ASPI), dragging it down by 67.05 points. While the broader banking sector index fell 0.8% due to NDB's weight, other major players saw gains. • Peer Performance: Commercial Bank: Up Rs. 0.50 to Rs. 199.75 Sampath Bank: Up Rs. 0.25 to Rs. 146.25 HNB: Up Rs. 3.25 to Rs. 398.25 Nations Trust Bank: Up Rs. 3.50 to Rs. 290.00 Amana Bank: Up Rs. 0.40 to Rs. 27.40 Union Bank: Up Rs. 0.30 to Rs. 13.30
📉 National Tea Averages Extend Decline for Third Consecutive Month
Sri Lanka’s tea industry faced continued pricing pressure in March 2026, marking a steady downward trend since the peak in December 2025. Based on Forbes & Walker Research, all elevations recorded negative variances in US$ terms. • Overall Market Performance The national sales average fell to Rs. 1,144.23 (US$ 3.63) in March, a month-on-month drop of Rs. 7.88. This represents a cumulative decline of Rs. 57.35 from December 2025. On a YoY basis, prices are down by Rs. 39.53 (US$ 0.36) compared to March 2025. • Sector Breakdowns (March 2026) Low Grown: Recorded the steepest monthly decline, dropping by Rs. 13.95 to Rs. 1,181.30. Prices are down Rs. 55.02 YoY. High Grown: Declined by Rs. 8.31 month-on-month to Rs. 1,150.71. While slightly up in Rupee terms YoY (+Rs. 5.72), it fell by US$ 0.21 in dollar value. Medium Grown: The only segment to see a marginal Rupee gain of Rs. 5.72 to Rs. 987.09, though it still suffered a YoY collapse of Rs. 69.21. • Q1 2026 Cumulative Data The national average for Jan–Mar 2026 reached Rs. 1,153.25 (US$ 3.70), reflecting a decline of Rs. 26.07 (US$ 0.28) over the same period in 2025. The data highlights a challenging quarter for tea exports as global price valuations soften.
Sri Lankan Bond Market Remains Bearish Ahead of Rs. 30 Bn Bill Auction 📉
The secondary bond market saw limited activity yesterday, with a cautious sentiment prevailing as investors await today's Treasury bill auction. • Treasury Bill Auction: A total of Rs. 30 Bn is on offer today across 91-day, 182-day, and 364-day maturities (Rs. 10 Bn each). This marks a significant Rs. 60 Bn decrease compared to last week’s Rs. 90 Bn offering. • Recent Yield Trends: Last week, weighted average rates rose for the second consecutive week by 16, 14, and 9 basis points to 7.80%, 8.09%, and 8.41% respectively. Only Rs. 32.70 Bn was accepted out of the Rs. 90 Bn offered. • Secondary Market Rates: - 01.07.28 maturity: 9.75% – 9.80% - 15.06.29 maturity: 9.85% - 2032 maturities: 10.80% - 01.06.33 maturity: 11.00% - Total transacted volume (April 6): Rs. 12.41 Bn • Money Market & Liquidity: Market remains liquid with a net surplus of Rs. 225.43 Bn. Call money and Repo rates stood stable at 7.64% and 7.66%. The CBSL drained Rs. 40 Bn via overnight repo at 7.55%. • Forex Market: The USD/LKR spot rate closed largely unchanged at Rs. 315.45/50. Daily traded volume was recorded at US$ 37.90 Mn.
📉 CSE Ends in Red: Foreign Outflows Exceed Rs. 1.1 Bn Over Two Days
The Colombo stock market recorded a downturn yesterday as cautious sentiment and significant foreign selling persisted. • Market Indices & Turnover The All Share Price Index (ASPI) declined by 0.45% (-94.14 points) to close at 21,032.46, while the S&P SL20 fell by 0.49% (-28.63 points) to 5,832.82. Daily turnover reached nearly Rs. 1.88 billion with 48.7 million shares traded. • Foreign & Investor Participation Heavy foreign outflows continued for a second session, recording a net outflow of Rs. 294 million, bringing the two-day total near Rs. 1.1 billion. Participation from retail and High Net Worth (HNW) investors remained subdued due to Middle East geopolitical tensions. • Sector Breakdowns Banking: Led turnover with a 49% share but saw the sector index lose 0.70%. Key activity was noted in NDB, HNB, and Commercial Bank. Materials: Contributed significantly to turnover, though the index dipped 0.17%, impacted by a price drop in Tokyo Cement (Non-Voting). Capital Goods: Along with materials, collectively accounted for 22% of daily turnover. • Key Contributors & Laggards Top negative impacts on the ASPI included NDB, Ceylinco Holdings, Cargills, Melstacorp, and JKH. Conversely, Galle Face Capital Partners saw a slight price appreciation amid institutional interest.
Secondary Bond Yields Consolidate Amid Global Tensions 📈
The secondary bond market started the week steady as investors adopted a defensive "wait-and-see" approach, influenced by Middle Eastern tensions and elevated global oil prices. • Bond Market Performance: Yields remained broadly stable across various maturities. Notable trades included: 2027: 01.05.27 maturity at 8.70%. 2029: 15.06.29 and 15.09.29 traded between 9.82% – 9.90%. 2033-2035: Longer-term yields (2033–2035) held between 11.00% – 11.135%. Volume: Secondary market transacted volume (as of April 2) totaled Rs. 11.89 Bn. • Market Liquidity & Central Bank: The financial sector saw a significant net liquidity surplus of Rs. 231.84 Bn. The CBSL drained Rs. 50.00 Bn via overnight repo at 7.58%. Rs. 181.84 Bn was deposited at the 7.25% SDFR. Overnight call money and repo rates averaged 7.63% and 7.66% respectively. • Forex & External Factors: The USD/LKR spot exchange rate remained steady, closing at Rs. 315.40/315.50 compared to the previous close of Rs. 315.35/315.40. Traded volume for April 2 was US$ 79.00 Mn. Sentiment continues to be anchored by external drivers, specifically Brent crude price volatility.
🛢️ Global Oil Prices Surge Past $110 Amid Iran-US Tensions
Global energy markets experienced high volatility yesterday as Brent crude briefly topped US$ 110 per barrel following renewed geopolitical friction in the Middle East. • Market Impact: Prices surged after US President Donald Trump threatened to target Iranian infrastructure, including power plants and bridges, if shipping through the Strait of Hormuz is not restored by late Tuesday. • Supply Disruptions: The Strait of Hormuz, a critical energy corridor, remains disrupted following Iranian threats to vessels. This follows a series of US and Israeli airstrikes initiated on 28 February. • Price Correction: Gains were partially pared later in the session following reports of a potential 45-day ceasefire negotiation involving the US, Iran, and regional mediators. • Current Status: Despite ceasefire rumors, a White House official confirmed that military operations under "Operation Epic Fury" continue. Markets remain sensitive to supply uncertainty and geopolitical signals. 📉 Economic Note: For Sri Lanka, sustained oil prices above $110 pose significant risks to the trade deficit and domestic energy costs, particularly for the transportation and manufacturing sectors.
CSE Recovers Mid-Session Slump to Close Week's Opening on Mixed Note 📈
The Colombo Bourse showed resilience yesterday, recovering from a mid-session dip below the 21,000 mark to see the benchmark index end in green, despite continued foreign selling pressure. • Market Performance ASPI: Closed at 21,126.60 (+0.04% | 9.18 points) S&P SL20: Closed at 5,861.45 (-0.24% | 14.24 points) Turnover: Over Rs. 3.00 Bn on 82 million shares traded. • Investor Activity Foreign Interest: Net foreign outflow of Rs. 804.7 Mn. High Net Worth (HNW): Significant participation in Melstacorp, Tokyo Cement, and John Keells Holdings. Crossings: Accounted for 31% of total turnover, dominated by a single Rs. 810 Mn crossing in Melstacorp. • Sector Breakdowns Food, Beverage & Tobacco: Top turnover contributor (33% share); sector index rose 0.62% led by Lanka Milk Foods (+Rs. 2.00). Capital Goods: Second highest contributor; index up 1.20% with gains in John Keells Holdings and Access Engineering. Banking: Observed mixed interest; DFCC Bank emerged as a top positive contributor, while Sampath Bank dipped by 50 cents. • Market Sentiment Early losses were attributed to Middle East tensions, but the ASPI recovered late in the day due to buying interest at lower levels in the banking and construction sectors.
Middle East Tensions Drive Up Domestic Yields & Weaken Rupee 📈
Sri Lanka’s secondary bond market closed higher last week as geopolitical volatility and rising oil prices (peaking at US$ 115) fueled inflation concerns. Market sentiment remained cautious following mixed signals regarding the Iran-U.S. conflict. • Overall Bond Market: Yields across the curve shifted upward. Short-term maturities like the 2027s traded between 8.85%–8.90%, while long-term 2035 tenors reached 11.00%. • Treasury Bill Auction: Weighted averages rose for the second week. The 91-day bill increased by 16 bps to 7.80%, while the 364-day bill rose to 8.41%. The auction was significantly undersubscribed, raising only 36.11% (Rs. 32.50 Bn) of its Rs. 90 Bn target. • Foreign Outflows: Rupee-denominated Government securities saw a net outflow of Rs. 4.98 Bn, marking the fifth consecutive week of foreign exits. Total foreign holdings dropped to Rs. 143.62 Bn. • Liquidity & Forex: Inter-bank liquidity surplus fell to Rs. 247.36 Bn from Rs. 288.31 Bn. The Sri Lankan Rupee (LKR) depreciated against the USD, closing the week at Rs. 315.35/40 compared to the previous week's Rs. 314.70/315.00. _Note: Data based on weekly market performance ending April 2, 2026._
📈 CSE Rebounds on Final Session but Weekly Performance Dips 1.2%
The Colombo Stock Exchange (CSE) ended the week on a positive daily note despite a broad weekly decline, as the market remained closed on Friday for the Good Friday holiday. • Weekly Performance: The All Share Price Index (ASPI) declined by 1.2% (-258.31 points) for the week, while the S&P SL20 fell by 2.0% (-124.30 points). • Daily Market Movement: On the final trading day, the ASPI gained 0.24% to close at 21,117.42. However, the S&P SL20 slipped 0.48% to 5,875.69, largely due to ex-dividend adjustments in the banking sector. • Trading Activity: Turnover reached Rs. 1.77 Bn with 64.1 Mn shares traded. Capital goods led activity (26% of turnover), followed by the banking and materials sectors. • Key Contributors: Top gainers included MELS, SAMP, and RIL. Heavyweights like JKH and TKYO.N dominated turnover, with the latter leading crossings at Rs. 88.9 Mn. • Investor Sentiment: Foreigners were net sellers with an outflow of Rs. 68.2 Mn. Market breadth was positive with 139 gainers against 84 decliners, while the Market P/E stood at 10.68.
Global Gold Prices Slump as U.S. Escalates Iran Conflict 📉
The safe-haven appeal of gold weakened significantly on Thursday after U.S. President Donald Trump signaled a continuation of aggressive military action in Iran, disrupting a four-day rally. • Overall Market Impact: Spot gold fell 1.3% to US$ 4,694.48 per ounce, while U.S. gold futures dropped 1.9% to US$ 4,723.70. This follows gold’s worst monthly performance since 2008, having dropped 11% in March. • Economic Factors: The decline was driven by a stronger U.S. dollar and rising 10-year Treasury yields. Brent oil surged over 4%, intensifying inflation concerns. However, high interest rates continue to curb gold's attractiveness, as markets price in no Fed rate cuts for the majority of 2026. • Precious Metals Sector: Broad-based selling impacted the entire sector: • Silver: Down 2.9% to US$ 72.95 • Platinum: Down 1.8% to US$ 1,928.26 • Palladium: Down 1.4% to US$ 1,451.85 • National Context: For Sri Lanka, extreme volatility in gold prices impacts the jewelry industry and the valuation of national reserves. Sustained high oil prices driven by the conflict also pose a risk to the country's energy costs and trade balance.
Global Markets Recoil as U.S.-Iran Tensions Escalate 📈
Global financial markets faced a sharp downturn following U.S. President Donald Trump’s vow to hit Iran "extremely hard," triggering fears of a prolonged conflict. The lack of clarity on the reopening of the Strait of Hormuz has intensified supply concerns across Asia. • Energy & Commodities: Brent crude surged 5% to US$ 106.16 per barrel. The continued closure of the Strait of Hormuz remains a critical risk for fuel shipping routes, directly impacting energy costs for import-dependent nations like Sri Lanka. • Global Equities: Risk assets saw a heavy sell-off. Asian markets were hit hardest; Japan’s Nikkei dropped 1.8%, while South Korea’s Kospi slid 3.6%. U.S. and European futures fell between 1% and 1.5%. • Currency & Macro Risks: The U.S. Dollar Index rose 0.3% to 99.858 as investors sought safety. Analysts warn of renewed stagflation risks—a combination of high inflation driven by energy prices and weakened economic growth. • Regional Impact: For Sri Lanka, the surge in oil prices and a strengthening Dollar may exert pressure on forex reserves and domestic fuel pricing, while volatility in Asian bourses could influence local investor sentiment in the banking and manufacturing sectors.
📈 T-Bill Yields Rise as Auction Sees Weak Demand
Treasury Bill yields continued an upward trajectory for the second consecutive week, despite inflation remaining well below the Central Bank's target. • Auction Results (Weighted Average Yields): 91-day: 7.80% (+16 bps) 182-day: 8.09% (+14 bps) 364-day: 8.41% (+09 bps) The auction was significantly undersubscribed, raising only Rs. 32.50 Bn (36.11%) of the Rs. 80 Bn offered. • Inflation (CCPI): The March CCPI print recorded +2.20% YoY, up from +1.60% in February. While accelerating, it remains below the Central Bank’s medium-term target of 5.00% and missed the Bloomberg forecast of 3.00%. • Secondary Bond & Forex Markets: Bonds: Yields held steady amid Middle Eastern conflict concerns and global oil price volatility. The 2027 maturity traded between 8.85%–8.90%. Forex: The Sri Lankan Rupee remained stable, with spot next USD/LKR closing at Rs. 315.50/315.70. • Market Liquidity: The money market maintained a net liquidity surplus of Rs. 277.95 Bn, with the Central Bank draining Rs. 112.50 Bn via overnight repo auctions at 7.60%.
📉 War Impact: UAE Stock Markets Lose US$ 120 Bn
The escalation of the US-Israel conflict with Iran has triggered a significant downturn in UAE financial markets, marking them among the hardest-hit globally. • Market Valuation: Combined losses for Dubai and Abu Dhabi reached ~US$ 120 Bn since Feb 28. The Dubai Financial Market (DFM) plunged 16% (loss of US$ 45 Bn), while the Abu Dhabi Securities Exchange (ADX) dropped 9% (loss of US$ 75 Bn). • Regional & Global Context: While Qatar (-4%) and Bahrain (-7%) saw declines, Saudi Arabia and Oman recorded gains. Comparatively, the US S&P 500 dropped 7% during the same period. • Sector Vulnerability: The travel & tourism sector—a critical pillar for economic diversification—is under heavy pressure. Dubai’s international airport has faced tens of thousands of flight cancellations due to the conflict. The sector previously contributed US$ 70 Bn (13% of GDP) to the UAE economy. • Outlook: Despite the volatility, experts view this as a "temporary shock" to investor sentiment rather than structural damage. The UAE maintains its goal to position Dubai as a top four global financial hub by 2033, backed by its 2024 milestone of exceeding US$ 1 Tn in total market capitalization. _Source: News reports as of April 1, 2026._
📉 CSE Ends March in the Red as Volatility Continues
The Colombo stock market closed marginally lower on Tuesday, recovering from a sharp intra-day slump where the ASPI briefly dipped below the 21,000-point threshold. • Market Performance: The ASPI fell 0.12% (26.06 points) to close at 21,066.18, while the S&P SL20 ended 0.08% lower at 5,904.10. • Monthly Decline: During March 2026, the market saw significant erosion, with the ASPI down 11.24% and the S&P SL20 down 11.03%. • Valuation Impact: The market has lost approximately Rs. 903 Bn in value since the onset of Middle East regional tensions on 28 February. • Trading Activity: Market turnover stood at nearly Rs. 3.6 Bn with 165 million shares traded. Crossings represented a significant 33.7% of the total turnover. • Sector Contributions: The Capital Goods sector led turnover at 52%, followed by the Banking and Materials sectors at a combined 28%. • Investor Sentiment: Foreign investors remained net sellers with an outflow of Rs. 125 million. Top negative contributors included SAMP, NDB, HAYL, ACL, and GLAS. _Source: Based on provisional market data for March 31, 2026._
📈 Oil Prices Dip 1% Amid Signals of De-escalation in U.S.-Iran Conflict
Oil prices retreated in Asian trading on Tuesday as markets reacted to reports of a potential shift in U.S. diplomatic strategy regarding the ongoing conflict with Iran. • Market Performance: Brent crude futures for May fell by $1.22 (1.08%) to US$ 111.56 per barrel, while U.S. WTI dropped 0.95% to US$ 101.90. This follows a volatile March where Brent surged 59% due to the closure of the Strait of Hormuz. • Geopolitical Context: Prices eased following reports that U.S. President Donald Trump may be open to ending military campaigns against Iran even if the Strait of Hormuz remains partially closed. However, analysts warn that prices will remain elevated until the waterway—which carries 20% of global oil—is fully reinstated. • Supply Chain Impacts: Security Risks: A Kuwaiti tanker was reportedly struck at a Dubai port, highlighting ongoing threats to seaborne energy. Logistics: Saudi crude exports are being heavily rerouted through the Red Sea, with volumes via the Yanbu port jumping to 4.658 million bpd from a 770,000 bpd average in early 2026. • National Significance: As a net importer of refined petroleum and crude oil, Sri Lanka remains highly sensitive to these global price fluctuations. Sustained high prices impact the transportation and manufacturing sectors, adding pressure to national forex reserves and domestic energy costs. _Note: Market sentiment remains volatile based on provisional diplomatic reports._
Global Oil Surges to $115 Amid Escalating Middle East Conflict 📈
• Energy Market Impact: Global oil prices jumped as the US-Israel-Iran conflict entered its fifth week. Brent crude rose over 3% to above US$ 115 per barrel, while US-traded oil climbed to US$ 101.62 (+2%). Brent is currently on track for its largest monthly gain on record. • Stock Market Slump: Major Asian indices saw sharp declines following weekend escalations. Japan’s Nikkei 225 dropped 2.8%, and South Korea’s KOSPI fell nearly 3%. • Geopolitical Risks: Tensions spiked after Houthi rebels struck Israel and Iran threatened retaliatory strikes. US President Trump indicated potential plans to seize Iran’s Kharg Island fuel hub, comparing the strategy to recent US actions in Venezuela. • Sri Lankan Context: As a net oil importer, the surge in Brent crude prices poses significant risks to Sri Lanka's energy costs and transportation sector. Prolonged high prices may exert pressure on foreign exchange reserves and domestic inflation. • Military Escalation: An additional 3,500 US troops arrived in the Middle East as Iran’s Parliament warned of readiness for direct confrontation.
📈 CSE Slumps as Global Oil Surges Amid Mideast Tensions
The Colombo Bourse started the week in the red, driven by dampened investor sentiment as global oil prices climbed to $115. Heightened geopolitical uncertainty led to broad-based selling across key blue-chip counters. • Market Performance: - ASPI: 21,092.24 (Down 1.33% | -283.49 points) - S&P SL20: 5,908.96 (Down 1.52% | -91.03 points) - Turnover: Approx. Rs. 2.2 Bn on 100 Mn shares traded. • Sector & Stock Highlights: - Capital Goods: Led turnover (28% share) but saw a sector index drop of 2.05%. John Keells Holdings (JKH) was a major detractor, closing at Rs. 18. - Banking: Contributed significantly to turnover; sector index fell 1.17%. Sampath Bank dropped 75 cents to Rs. 155.50. - Energy: Lanka IOC bucked the trend, gaining 75 cents to close at Rs. 140 amid rising oil prices. - Food, Beverage & Tobacco: Collectively contributed to 36% of turnover alongside banking; Lanka Milk Foods declined by Rs. 3.20. • Investor Activity: - Net Foreign Outflow: Rs. 32.5 Mn. - Participation: Subdued interest from HNW and retail investors. - Major Detractors: JKH, NDB, HAYL, MELS, and COMB exerted the most downward pressure.
📈 Secondary Bond Yields Rise Amid Global Oil Spikes & Inflation Fears
The Sri Lankan bond market started the week on a bearish note as selling pressure pushed yields higher. Market sentiment is currently weighed down by external pressures, specifically rising global oil prices (Brent crude exceeding $ 115/barrel) and heightened Middle East tensions. • Bond Market Performance: Yields edged up across various maturities due to "imported inflation" concerns. 01.05.28 maturity: Traded at 9.65% 15.09.29 maturity: Traded at 9.95% 01.03.30 maturity: Range of 9.99% - 10.00% 2033/2034 maturities: Hovering between 11.00% - 11.10% • Treasury Bill Auction: A total of Rs. 90 Bn is on offer today (Rs. 40 Bn for 91-day, Rs. 30 Bn for 182-day, and Rs. 20 Bn for 364-day bills). This follows last week's auction where weighted average yields rose across all tenors for the first time in 10 weeks. • Currency & Liquidity: Forex: The LKR depreciated slightly against the US Dollar, closing at Rs. 315.10/316.00 compared to the previous Rs. 314.70/315.00. Liquidity: A net surplus of Rs. 268.86 Bn was recorded. The Central Bank drained Rs. 120 Bn via overnight Repo at 7.60%. • Market Activity: Secondary market transacted volume for bonds/bills stood at Rs. 13.64 Bn, while USD/LKR traded volume reached $ 87.10 Mn. Investors remain cautious, awaiting clearer global economic direction.
📉 Colombo Stock Market Ends Lower as Indices Retreat
The Colombo Stock Exchange (CSE) experienced a downward trend today, with both benchmark indices closing in the red amid active trading. • Market Performance: The All Share Price Index (ASPI) dropped by 283.49 points (-1.33%) to close at 21,092.24. • Blue-Chip Movement: The S&P SL20 Index, which tracks the most liquid stocks, fell by 91.03 points (-1.52%) to settle at 5,908.96. • Liquidity: Daily market turnover was recorded at Rs. 2.17 billion, reflecting steady participation despite the price declines. Based on provisional end-of-day data for March 30, 2026. ---
Global Oil Surge: Brent Hits Record Highs Amid Middle East Escalation 📈
The global energy market is facing a significant supply shock as conflict in the Middle East expands, directly impacting Sri Lanka’s energy costs and import bill. • Price Movements: Brent crude jumped 2.16% to US$ 115/barrel, marking a record 59% monthly increase. WTI rose 1.87% to US$ 101.50/barrel. • Conflict Expansion: Iranian-aligned Houthi attacks on Israel and strikes on Iranian infrastructure have widened the conflict beyond the Strait of Hormuz into the Red Sea and Bab el-Mandeb chokepoints. • Supply Chain Risk: With the Strait of Hormuz (handling 20% of global oil) effectively closed, over 4.6 million barrels per day of Saudi exports have been diverted. Disruptions to Red Sea terminals like Oman’s Salalah further threaten refined product flows. • Economic Outlook: Despite reports of "indirect talks" between the U.S. and Iran, markets are bracing for a sharp military escalation. _Impact Note:_ For Sri Lanka, this surge in global prices exerts immense pressure on foreign exchange reserves and may necessitate adjustments in domestic fuel and electricity pricing to manage the rising cost of refined petroleum imports. _Data based on provisional market reports._ ---
📈 Global Energy Shock: Asia Stocks Dive as Brent Crude Eyes Record 60% Monthly Rise
A protracted Gulf conflict and the closure of the Strait of Hormuz have triggered a massive sell-off across Asian markets, signaling heightened inflationary risks and potential recessionary pressure for energy-dependent economies like Sri Lanka. • Market Performance: - Japan’s Nikkei slumped 4.7% (down ~14% in March). - South Korea fell 4.2%, while MSCI Asia-Pacific dropped 1.2%. - U.S. and European futures are trading in the red, down between 0.7% and 1.5%. • Energy & Commodities: - Brent Crude surged 3.0% to US$ 115.98/bbl, marking a staggering 60% monthly increase—surpassing the 1990 Gulf War price spike. - Analysts warn prices could hit US$ 150/bbl if supply disruptions continue into June. - Surging costs are reported for fertiliser, shipping fuel, plastics, and pharmaceuticals, directly impacting Sri Lanka’s tea production costs and apparel logistics. • Macro Outlook: - Markets have pivoted from expecting interest rate cuts to anticipating further tightening by the U.S. Federal Reserve. - The U.S. Dollar remains dominant as a "safe haven," with the Yen weakening past 160, putting further pressure on Asian currency stability and import costs. - Global inflation is spiking; EU annual inflation is forecast to leap to 2.7% from 1.9% in just one month.
Secondary Bond Market Yields Steady Amid External Volatility 📈
The Sri Lankan secondary bond market experienced choppy trading last week, driven primarily by Middle Eastern geopolitical tensions and fluctuating Brent crude prices. Despite intra-week swings, yields closed broadly unchanged across the belly and long end of the curve. • Market Drivers & Policy: Sentiment remained cautious as the Central Bank of Sri Lanka held policy rates steady. Yields faced upward pressure following the first T-Bill rate hike in 10 weeks and conflicting international diplomatic reports. • Yield Curve Performance: • Short-term: 2027 maturities traded between 8.57%–8.72%. • Medium-term: 2029 tenors saw activity between 9.65%–10.12%, while 2031 maturities hit highs of 10.37%. • Long-term: 2034/2035 bonds traded in the 10.97%–11.23% range. • Treasury Bill Auction: Rates rose across all tenures for the first time in 10 weeks. The 91-day yield rose to 7.64% (+3 bps), 182-day to 7.95% (+4 bps), and 364-day to 8.32% (+9 bps). The auction was undersubscribed, raising only Rs. 34.94 Bn (43.68% of the Rs. 80 Bn offer). • Foreign Inflows & Liquidity: Government securities saw a net foreign outflow of Rs. 8.68 Bn—the fourth consecutive weekly drop—bringing total foreign holdings down to Rs. 148.60 Bn. Market liquidity remains in a surplus of Rs. 288.31 Bn. • Currency Watch: The LKR depreciated against the US Dollar, closing the week at Rs. 314.70/315.00 compared to the previous week’s Rs. 311.85/312.00. _Data based on weekly market summary from Wealth Trust Securities._
### CSE Weekly Review: ASPI Gains 3.56% Despite Volatile Friday Close 📈
The Colombo Bourse ended the week on a positive note overall, despite a late-session dip on Friday driven by global geopolitical uncertainty and oil price volatility. • Market Performance (Weekly) The All Share Price Index (ASPI) climbed 3.56% (+736 points) to 21,375.73, while the active S&P SL20 rose 4.3% (+247 points) over the five-day period. • Daily Close (Friday) Indices retreated slightly as the ASPI dropped 0.21% and the S&P SL20 fell 0.59%. Market turnover reached Rs. 2.7 Bn with 145.5 Mn shares traded. • Sector Highlights Consumer Durables & Apparel dominated market activity, contributing 22% to total turnover. The Capital Goods and Materials sectors followed, jointly accounting for 30% of the day's volume. • Investor Activity Foreign Investors were net sellers with a significant weekly net outflow of over Rs. 1.2 Bn. High net worth interest was concentrated in CIC Holdings and Hatton National Bank, while retail interest focused on Industrial Asphalts and Co-Operative Insurance. • Key Laggards Price losses in Banking (HNB, Commercial Bank) and Conglomerates (Melstacorp, JKH) weighed on the final daily performance.
📈 Global Oil Prices Rise Amid Ongoing Volatility
Oil prices edged up on Friday but are set for their first weekly decline since early February. While a temporary pause in attacks on Iran’s energy plants provided slight relief, the market remains under intense pressure due to the ongoing conflict. • Market Prices: Brent crude rose 1.73% to US$ 109.88/bbl, while WTI increased 1.66% to US$ 96.05/bbl. Despite the daily gain, weekly prices are down roughly 2.1%–2.3%. • Supply Impact: The month-old war has removed approximately 11 million barrels per day from global supply. The IEA has categorized this crisis as more severe than both 1970s oil shocks combined. • Historical Context: Since the conflict began in late February, Brent has surged 52% and WTI 43%, significantly impacting global energy costs and import-dependent economies like Sri Lanka. • Economic Outlook: While the pause in energy plant strikes offers a marginal cooling, investors remain cautious regarding a formal ceasefire. High energy costs continue to pose a risk to the transportation and manufacturing sectors.
### 📈 Secondary Bond Yields Edge Up Amid Global Oil Pressure
The secondary bond market saw yields rise yesterday, driven by bearish sentiment following a rebound in global oil prices. While participation remained subdued, several block transactions maintained healthy trading volumes. • Bond Market Highlights Yields across key maturities trended upward as Brent crude climbed back above US$ 104 per barrel. 2028 Maturities: Traded between 9.55% and 9.70%. 2029 Maturities: Saw rates ranging from 9.78% to 10.00%. Long-term (2032-2033): Yields reached between 10.68% and 11.00%. Total Transacted Volume (25 March): Rs. 37.60 Bn. • Liquidity & Money Market The market maintained a net liquidity surplus of Rs. 247.29 Bn. The Central Bank drained Rs. 100 Bn via overnight repo at a 7.61% weighted average. Overnight call money and repo rates stood at 7.60% and 7.64% respectively. • Forex Market The Sri Lankan Rupee (LKR) weakened slightly against the US Dollar. Spot USD/LKR: Closed at Rs. 314.30/314.70 (vs. previous Rs. 313.80/314.50). Daily Traded Volume: US$ 39.60 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._
📉 CSE Slumps 2% as Mideast Tensions Drive Oil Prices Higher
The Colombo stock market snapped a two-day rally yesterday, with Rs. 173 Bn in market value wiped out as global oil prices climbed to US$ 104 per barrel amid escalating Middle East instability. • Market Indices: The All Share Price Index (ASPI) fell by 2.05% (448.91 points) to 21,419.94, while the S&P SL20 dropped 1.61% to 6,035.52. • Trading Volume: Daily turnover stood at Rs. 3.3 Bn, a 36.6% decline compared to the monthly average, with 175.3 million shares traded. • Investor Sentiment: Foreigners were net sellers with an outflow of Rs. 4.1 Mn. Participation from high-net-worth and retail investors remained average as profit-taking set in. • Sector Impact: The Materials sector led turnover (25%), followed by Capital Goods and Banking (27% combined). Top negative contributors included HNB, MELS, COMB, CTHR, and JKH. • Context: The decline follows a record-breaking two-session recovery where the market regained 48% of losses incurred since the start of the conflict. Uncertainty surrounding US–Iran negotiations remains a key pressure point for the financial and energy-sensitive sectors.
Gold Prices Steady at US$ 4,503 Amid Mideast Tensions 📈
• Market Status: Spot gold held steady at US$ 4,503.29 per ounce as investors weigh a U.S. 15-point ceasefire proposal against threats of further military escalation. • Economic Context: Safe-haven demand remains cautious. While crude oil surged above US$ 100 a barrel due to the closure of the Strait of Hormuz, rising inflationary pressure is being offset by high interest rates. • Interest Rate Outlook: Markets have pivoted significantly, now pricing in zero rate cuts from the Federal Reserve for 2026, a shift from previous expectations of at least two cuts. • Impact on Sri Lanka: As a net importer of oil and a country sensitive to global gold prices and USD interest rates, the halt in Fed easing and high energy costs may pressure the external sector and cost of living. • Other Precious Metals: - Silver: Down 0.1% to US$ 71.19 - Platinum: Down 0.7% to US$ 1,906.90 - Palladium: Down 1.4% to US$ 1,404 _Data based on Reuters reports as of March 26, 2026._
📈 Global Markets Rally as Oil Prices Dip on Peace Prospects
World stock markets surged yesterday following reports of a US-led 15-point peace framework for Iran, sparking hopes for a Middle East ceasefire. The easing of geopolitical tensions led to a notable shift in global indices and commodity prices. • Global Equity Performance: Japan’s Nikkei led Asian gains, closing up 2.9%, while Hong Kong’s Hang Seng rose over 1%. European markets showed strong momentum with Germany’s Dax up 1.4%, France’s Cac 40 climbing 1.2%, and London’s FTSE 100 gaining over 1%. US indices remained bullish at the open, with the Dow Jones, Nasdaq, and S&P 500 all trading approximately 1.1% higher. • Commodities and Safe Havens: Oil prices dipped as supply disruption fears eased due to potential diplomacy. Gold, which hit a historic high of over US$ 5,000/oz in January, has seen its rally stall. The metal has fallen by approximately 13% to roughly US$ 4,550/oz, challenging its traditional status as a primary "safe haven" asset during conflict. • Economic Context: The cooling of energy prices and market stabilization provides a favorable backdrop for import-reliant economies like Sri Lanka, particularly concerning energy costs and global trade sentiment.
📈 CSE Marks Record Rebound as Market Recoups 48% of Conflict Losses
The Sri Lankan stock market extended its recovery for a second consecutive session, setting a new benchmark for single-day point gains. The surge follows easing global oil prices and optimism regarding diplomatic negotiations in the Middle East. • Overall Market Performance The ASPI surged by 3.79% (+797.62 points) to close at 21,868.85, while the S&P SL20 rose 3.81% (+225 points) to 6,134.23. Total market turnover reached Rs. 6.4 Bn with 299.5 million shares traded. • Value Recovery The market gained Rs. 284.1 Bn in value yesterday, bringing the two-day total gain to Rs. 528 Bn. This recoups 48% of the Rs. 1.1 Tn value lost since the onset of the Middle East conflict on Feb 28. • Sector Highlights Food, Beverage & Tobacco: Led turnover (22% share) with the sector index rising 4.20%, driven by Lanka Milk Foods and Melstacorp. Capital Goods & Materials: Contributed a combined 34% to turnover. The Capital Goods sector rose 4.28%, led by Colombo Dockyard. Banking: Commercial Bank and Hatton National Bank were principal contributors to the upward momentum. • Investor Activity High net worth and retail participation remained above average. While domestic sentiment was strongly positive (265 green vs. 16 red counters), foreign investors remained net sellers with a net outflow of Rs. 525 Mn.
Global Markets Rally as Mideast Ceasefire Hopes Soften Oil Prices 📈
• Market Sentiment: Global equities surged on Wednesday following reports of a U.S. 15-point ceasefire proposal for the conflict with Iran. S&P 500 futures rose 0.9%, while Asian markets in Japan and South Korea gained approximately 2%. • Energy & Commodities: Brent crude futures dropped 6% to US$ 98.30 per barrel, offering slight relief to energy-dependent economies like Sri Lanka. However, prices remain 35% higher since the conflict began, maintaining pressure on Asian buyers of diesel and jet fuel. • Interest Rates & Inflation: Despite the temporary market bounce, central banks in Europe and Australia are still expected to hike rates to combat war-driven inflation. U.S. 10-year Treasury yields eased to 4.34% as investors reacted to the diplomatic headlines. • Currency & Credit: The U.S. Dollar weakened slightly, trading at 158.8 Yen. Concerns are emerging in credit markets, with major asset managers like Ares Management capping withdrawals in private debt funds due to rising financial stress. • Geopolitical Context: While the U.S. seeks a month-long truce, the situation remains "fragile" as military strikes continue and the U.S. prepares to deploy thousands of additional troops to the region.
📈 Bond Yields Volatile Amid Geopolitical Tensions & Policy Review
Secondary market bond yields experienced a "see-saw" trend yesterday, initially softening on temporary de-escalation in the Middle East before retracing higher due to renewed uncertainty and profit-taking. Market sentiment remains cautious ahead of today’s crucial Monetary Policy Review. • Market Movements: • 15.02.28 maturity traded at 9.50%. • 2029 maturities (June/Sept/Dec) saw intraday lows of 9.75%–9.85% before climbing back to 9.95%. • Long-term yields: 2032 maturity traded between 10.60%–10.85%, while 2033 maturity held at 10.90%. • Monetary Policy & Auctions: • The Central Bank of Sri Lanka (CBSL) is set to announce its 2nd Policy Review for 2026 today (7:30 AM). Rates currently sit at 7.25% (SDFR) and 8.25% (SLFR). • A Treasury Bill auction of Rs. 80 billion is scheduled for today, featuring 91-day (Rs. 20b), 182-day (Rs. 25b), and 364-day (Rs. 35b) bills. The offer is slightly below the maturing volume of Rs. 87.17 billion. • Liquidity & Forex: • Net Liquidity Surplus: Rs. 241.71 billion. • Currency: The LKR saw slight depreciation, with the spot rate closing at Rs. 314.00/314.40 against the USD, compared to the previous close of Rs. 313.00/314.00. • Daily Volume: Secondary market bond/bill transactions totaled Rs. 16.93 billion; Forex volume stood at US$ 71.25 million.
Global Oil Prices Rebound Amid US-Iran Tensions 📈
Brent crude rose back above US$ 100 per barrel, recovering from a sharp 10% plunge on Monday. The price surged by 4% to reach US$ 104 before stabilizing around US$ 102. Market volatility follows conflicting reports regarding diplomatic talks; while US officials claimed "productive" conversations, Tehran officially rejected these claims as market manipulation. The price fluctuations directly impact Sri Lanka’s energy sector and transportation costs, influencing national inflation and the trade balance as an oil-importing nation. Ongoing geopolitical instability in the Middle East continues to pose risks to the cost of petroleum products and thermal power generation locally.
CSE Records Historic Single-Day Gain: Rs. 244 Bn Recovered 📈
The Colombo stock market staged a record-breaking recovery yesterday, posting its highest-ever single-day points increase. The rebound follows news of potential de-escalation in the Middle East and a temporary ceasefire regarding Iranian energy facilities. • Overall Market Performance The All Share Price Index (ASPI) surged by 3.47% (+706.26 points) to close at 21,071.23. The S&P SL20 rose by 3.91% (+222.41 points) to 5,909.23. Market capitalization recovered Rs. 244 Bn, regaining 22% of the value lost since late February. Market turnover exceeded Rs. 4.2 Bn with 193.4 million shares traded. • Sector Breakdowns & Key Drivers Capital Goods: Led turnover with a 27% share; sector index gained 4.59% driven by John Keells Holdings and Colombo Dockyard. Banking: Contributed significantly to turnover with the sector index up 4.11%, led by Sampath Bank and Commercial Bank. Food, Beverage & Tobacco: Collectively with banking, accounted for 27% of total turnover. • Investor Sentiment & Participation Market breadth was strongly positive (243 gainers vs. 13 decliners). While retail interest was noted in hospitality and finance (e.g., LOLC Finance), high net-worth investors largely remained on the sidelines. Foreign investors remained net sellers, recording a net outflow of Rs. 614.5 million.
📈 Colombo Bourse Surges Over 3% in Broad-Based Rally
The Colombo Stock Exchange (CSE) witnessed a significant upswing on Tuesday, March 24, 2026, driven by strong investor sentiment and widespread gains across the board. • Market Performance Overview: The All Share Price Index (ASPI) climbed by 706.26 points (+3.47%) to close at 21,071.23. The S&P SL20 Index, tracking blue-chip stocks, rose by 222.41 points (+3.91%) to settle at 5,909.23. • Market Breath & Sentiment: The rally was exceptionally broad-based, with share prices of 228 companies advancing against only 11 decliners. • Turnover & Investor Activity: Total daily turnover reached Rs. 4.21 Billion. • Domestic Participation: Local investors dominated the session with purchases of Rs. 4.16 Bn and sales of Rs. 3.55 Bn. • Foreign Participation: Foreigners remained net sellers, with purchases totaling Rs. 47 Mn against sales of Rs. 661 Mn. The session reflects a robust recovery in banking, diversified financials, and manufacturing interests, signaling renewed domestic confidence in the national economic trajectory.
CSE Slumps 1.33% as Middle East Tensions Weigh on Market Sentiment 📉
The Colombo Stock Exchange started the week in red, driven by escalating Middle East conflict concerns and global supply chain disruptions. The market has lost over Rs. 1.1 trillion in value since late February 2026. • Market Indices: The ASPI dropped 1.33% (274.76 points) to close at 20,364.97, while the S&P SL20 fell 1.14% to 5,686.82. • Trading Volume: Market turnover recorded a low US$ 7.28 Mn (Rs. 2.37 Bn) with 96.2 million shares traded. • Sector Performance: The Capital Goods sector led turnover (29%), followed by Banking and Diversified Financials (27%). • Key Decliners: Major negative contributors included JKH, DOCK, RIL, DIAL, and CFIN. Market breadth was heavily negative (209 losers vs. 39 gainers). • Investor Activity: Foreign investors remained net sellers with a net outflow of Rs. 118.1 Mn. High-net-worth and retail participation remained below average due to rising crude oil prices and domestic energy supply uncertainties.
📈 Asia-Pacific Markets Plunge on US-Iran Energy Ultimatum
Global markets are reeling following US President Donald Trump’s threat to "obliterate" Iran's energy infrastructure if the Strait of Hormuz is not reopened within 48 hours. The escalating conflict has triggered a sharp sell-off across major indices and spiked energy volatility. • Market Performance Overview: Japan’s Nikkei 225: 📉 Down 4.0% South Korea’s KOSPI: 📉 Down 4.5% Hong Kong’s Hang Seng: Down ~2.0% Australia (ASX 200) & NZ (NZX 50): Down 1.6% and 1.3% respectively. • Energy & Commodity Impact: Brent Crude: Surged above US$ 114 per barrel before settling near US$ 112. Oil prices have climbed over 50% since the conflict began on February 28. Analysts warn of a "cascading global energy crisis," with projections suggesting oil could hit US$ 150–200 per barrel if the blockade persists. • Economic Context: The Strait of Hormuz is a critical chokepoint for one-fifth of global oil and gas exports. For Sri Lanka, a sustained spike in global energy prices typically pressures foreign reserves, increases transportation costs, and impacts the manufacturing sector due to higher thermal power costs. • Geopolitical Status: Iran has threatened retaliatory strikes on regional energy and water infrastructure and a total closure of the waterway, which currently only sees limited transit by Chinese, Indian, and Pakistani vessels.
Asian Currencies Falter as South Korean Won Hits 17-Year Low 📉
Asian markets faced significant downward pressure on Monday as geopolitical volatility in the Middle East drove a broad strengthening of the US dollar. • Regional Overview: Major currencies across Asia hit historic or multi-year lows, driven by concerns over energy costs and capital outflows, though some resilience was noted in Southeast Asian hubs. • Key Market Decliners: South Korean Won: Fell to 1,517.3 per dollar, its weakest level since the 2009 global financial crisis. Indonesian Rupiah: Hovered near the critical 17,000 level despite active policy support. Indian Rupee & Philippine Peso: Both touched record lows before central bank interventions provided temporary stability. Thai Baht: Faced bearish sentiment linked to rising fuel costs and potential impacts on tourism and the current account. • Resilient Performers: Singapore Dollar: Maintained stability within its existing policy band. Chinese Yuan & Malaysian Ringgit: Showed relative strength, bolstered by domestic economic signals and proactive policy measures. _Note: Market sentiment remains sensitive to Middle Eastern developments and central bank intervention strategies._
SL Bond Yields See-Saw Amid Mideast De-escalation & Oil Price Drop 📈
The secondary bond market experienced a volatile start to the week, initially trending bearish before recovering late in the session following shifts in global energy markets. • Bond Market Performance: Yields rose early in the day due to geopolitical tensions, but saw a recovery (lower quotes) toward the close. This shift followed a 10% plunge in Brent crude to approximately US$ 100 per barrel after U.S. signals of de-escalation in the Middle East. • Key Yield Ranges: • 2027-2028 Maturities: Traded between 8.57% – 9.70%. • 2029-2030 Maturities: Significant activity seen between 9.85% – 10.22%. • Long-term (2034): Traded higher in the 11.12% – 11.23% range. • Market Liquidity: The total secondary market volume for treasury bonds/bills reached Rs. 23.63 Bn. Money markets recorded a net liquidity surplus of Rs. 240.27 Bn, with the Central Bank draining Rs. 87 Bn via overnight Repo at 7.59%. • Currency Watch: The Sri Lankan Rupee (LKR) depreciated further against the US Dollar, closing at Rs. 313.00/314.00 compared to the previous close of Rs. 311.85/312.00. Total USD/LKR traded volume stood at US$ 62.28 Mn. _Note: Based on provisional market data from Wealth Trust Securities and CBSL._
📈 Global Oil Prices Plunge 13% as Geopolitical Tensions Ease
Global Markets: Crude oil prices saw a sharp decline on Monday following U.S. President Donald Trump's decision to postpone military strikes on Iranian energy infrastructure and power plants. Price Benchmarks: • Brent crude futures dropped approximately $17 (15%), hitting a session low of US$ 96.00 per barrel. • U.S. West Texas Intermediate (WTI) fell by $13 (13.5%), reaching a session low of US$ 85.28 per barrel. National Context: For Sri Lanka, a sustained drop in global oil prices is critical for reducing energy costs and easing pressure on foreign exchange reserves. Lower fuel prices typically support the transportation and manufacturing sectors, helping to manage domestic inflation. _Data based on reports from 23 March 2026._
📈 Global Energy Shock: Asia Markets Slide as Gulf Conflict Escalates
Regional markets plummeted on Monday as rising geopolitical tensions in the Gulf sent oil prices on a volatile trajectory, severely impacting net energy importers across Asia. • Market Performance Japan’s Nikkei fell 3.8% (down 13% in March), while South Korea’s market dropped 5.2%. MSCI’s Asia-Pacific index (ex-Japan) shed 2.5%; Chinese blue chips declined 1.9%. U.S. 10-year Treasury yields hit an eight-month peak of 4.4150% as inflation fears mount. • Energy & Commodities Brent crude rose to US$ 112.62/barrel, marking a 55% increase this month. Singapore jet fuel has surged 175% this year, while Asian LNG climbed 130%. Bunker fuel price spikes are driving up shipping & logistics costs, while rising fertilizer prices threaten global food security. • Economic Outlook Markets have abandoned hopes for monetary easing, now pricing in potential rate hikes to combat the energy-led inflationary pulse. The crisis is described by the IEA as potentially more severe than the combined oil shocks of the 1970s. High energy costs and rising yields are clouding corporate profit outlooks and pressuring fiscal budgets globally. • Currency & Gold The US$ remains a dominant store of liquidity, benefiting from the U.S. status as a net energy exporter. Gold slipped 2.6% to US$ 4,371/oz as investors pivot toward expectations of higher global interest rates.
## CSE Slumps 4.85% Weekly Amid Middle East Crisis 📉
The Colombo stock market faced a volatile week as geopolitical tensions continue to erode investor sentiment, despite a minor recovery during the final session. • Market Performance ASPI dropped 4.85% (1,052.82 points) to close at 20,639.73. S&P SL20 (blue-chip index) declined 5.46% (332.46 points). Total market value loss of Rs. 1.06 trillion since the Middle East conflict began on Feb 28. • Sector & Trading Activity Capital Goods led daily turnover (42%), followed by Banking and Insurance (25%). Investors engaged in bargain hunting within the Banking sector. Top positive contributors included SAMP, HAYL, JKH, DOCK, and MELS. • Investor Sentiment Foreign investors remained net sellers with a net outflow of Rs. 783 million. High-Net-Worth (HNW) activity was elevated, specifically in JKH (Rs. 628 million in crossings), while retail participation remained subdued. Daily turnover reached Rs. 4.4 billion, supported by easing global oil prices. _Note: Summary based on provisional market data as of March 21, 2026._
Global Markets Update: Oil Retreats from $119 Peak Amid Iran Conflict 📈
Global markets remain volatile as energy prices react to escalating tensions in the Middle East following strikes on Gulf infrastructure. • Energy & Commodities • Brent Crude fell 0.4% to US$ 108.19/bbl, pulling back from a session high of US$ 119. • US Crude (WTI) declined 1.2% to US$ 94.40/bbl. • Safe-haven assets saw gains: Gold rose 1.8% to US$ 4,688.50/oz, while Silver climbed 1.3%. • Global Equity Markets • Asian Markets: Mostly lower; Hong Kong’s Hang Seng dropped 1%, and China’s Shanghai Composite fell 1.2%. India’s Sensex bucked the trend, gaining 1%. • Wall Street: US indices closed in the red; the S&P 500 slipped 0.3% and the Dow Jones fell 0.4%. • Currency Trends • The US Dollar strengthened against the Yen (158.37), while the Euro weakened slightly to $1.1570. The retreat in oil prices provides a slight breather for oil-importing nations like Sri Lanka, though sustained high prices near the US$ 110 mark continue to pose risks to transportation and manufacturing costs. Based on provisional market data (March 21, 2026).
📈 Global Oil Prices Retreat Amid De-escalation & Supply Boost
Oil prices softened on Friday as international efforts to secure the Strait of Hormuz and U.S. measures to increase supply eased supply chain anxieties. This provides a potential cooling effect on global energy costs, critical for Sri Lanka’s fuel imports and inflation management. • Price Movements: Brent futures fell 1.3% to $107.29/bbl, while WTI dropped 2.0% to $94.22/bbl. Despite the daily dip, Brent remains on track for a nearly 4% weekly gain following recent geopolitical tensions in the Gulf. • Supply & Logistics: Strait of Hormuz: European nations and Japan have committed to ensuring safe passage through this chokepoint, which handles 20% of global oil and LNG. U.S. Interventions: The U.S. may remove sanctions on stranded Iranian oil and consider further Strategic Petroleum Reserve releases. Production: North Dakota's output is expected to rise as inactive wells restart, adding further downward pressure on prices. • Market Outlook: Analysts suggest that while "war premiums" are unwinding due to diplomatic engagement, the market remains sensitive. Any fresh hits to energy infrastructure or tanker routes could quickly reverse these gains. _Source: Reuters (Provisional Data)_ ---
📈 Yields Surge Across Secondary Bond Market Amid Global Risks
The secondary bond market saw a sharp upward trend yesterday, with yields spiking by 20–30 basis points across the curve. This shift was triggered by a deterioration in global risk sentiment following a surge in Brent crude to nearly US$ 117 per barrel and heightened geopolitical tensions in the Middle East. • Secondary Bond Market Performance: Selling pressure was broad-based across all maturities, though buying interest at higher yield levels eventually capped the rise. • 2027 Maturity: Traded between 8.55%–8.60%. • 2029 Maturities: Range expanded significantly to 9.70%–10.10%. • 2034 Maturities: Reached highs of 10.95%–11.12%. • Total Transacted Volume (18 March): Rs. 51.91 Bn. • Money Market & Liquidity: • Net Liquidity Surplus: Recorded at Rs. 283.00 Bn. • Central Bank Intervention: The DOD drained Rs. 100.00 Bn to manage excess liquidity. • Overnight Rates: Call money and Repo weighted averages stood at 7.58% and 7.60% respectively. • Forex Market: The USD/LKR spot exchange rate closed slightly weaker at 311.50/311.65, compared to the previous close of 311.30/311.50. The total traded volume for the day was US$ 38.45 Mn. _Note: Market sentiment remains sensitive to global energy prices and central bank inflation warnings._
📈 Oil Surges 3% Following Iranian Strikes on Mideast Energy Hubs
Global oil benchmarks spiked on Thursday as geopolitical tensions escalated following Iranian attacks on several key energy facilities in the Middle East, including major sites in Qatar, Saudi Arabia, and the UAE. • Price Movements: Brent futures rose by 3.44% (US$ 3.69) to US$ 111.07 per barrel. U.S. West Texas Intermediate (WTI) increased by 2.38% (US$ 2.29) to US$ 98.61. WTI continues to trade at its widest discount to Brent in 11 years. • Sector Impact & Infrastructure: QatarEnergy reported "extensive damage" to the Ras Laffan LNG hub. In the UAE, operations at the Habshan gas facilities and Bab oil field were partially shut. Saudi Arabia intercepted four ballistic missiles targeting Riyadh and a drone strike on a gas facility. • Regional Context: The escalation follows strikes on Iran’s South Pars gas field. With no immediate signs of de-escalation or the reopening of the Strait of Hormuz, market analysts expect prices to remain supported by high risk premiums. • Economic Outlook: For Sri Lanka, sustained high global oil prices typically exert pressure on foreign exchange reserves and domestic energy costs, impacting the transportation and manufacturing sectors. The U.S. is reportedly considering troop deployments to secure oil tanker passage through the region.
Global Markets Slump as Middle East Conflict Escalates; Oil Prices Surge 📈
Global financial markets faced a sharp downturn on Thursday following a major escalation in the conflict involving the U.S., Israel, and Iran, heightening stagflation risks. • Energy Market Impact: Brent crude futures rose 4.5% to US$ 112.19 per barrel, while U.S. crude reached US$ 97.07 (+1%). Natural gas prices spiked over 6% following retaliatory strikes on energy infrastructure in the Gulf. • Currency Volatility: The Japanese Yen wobbled near the critical 160 per dollar threshold. The U.S. Dollar remains the preferred safe-haven, with the Dollar Index up 2.5% this month as the Fed signals a cautious approach to rate cuts. • Equities Downturn: Major Asian indices saw heavy selling; Japan’s Nikkei dropped 2.5% and South Korean equities fell 1.5%. European futures are trading down by over 1%. • Monetary Policy: The Bank of Japan maintained interest rates at 0.75%. Central banks, including the ECB and Bank of England, are expected to hold rates steady today while assessing the impact of rising energy costs on global inflation and growth. • Economic Outlook: Analysts warn this escalation marks a shift from a geopolitical event to a macro-economic crisis, directly impacting the "plumbing" of the global energy system and threatening a prolonged period of low growth and high inflation.
T-Bill Yields Hold Steady Amidst Under-Subscribed Rs. 120 Bn Auction 📈
• Treasury Bill Auction: Weighted Average Yield Rates (WAYR) remained unchanged across all tenors. The 91-day stood at 7.61%, 182-day at 7.91%, and 364-day at 8.23%. • Auction Performance: The auction was significantly undersubscribed, raising only Rs. 60.79 Bn (50.66%) of the Rs. 120 Bn offered. The bid-to-cover ratio was recorded at 1.73 times. • Secondary Bond Market: In contrast to T-Bills, bond yields continued an upward trend driven by bearish sentiment. This is linked to the Middle East conflict, rising oil prices, and potential fuel rationing affecting the broader transport and energy sectors. • Yield Specifics: Notable trades included the 2026 maturity at 8.00%-8.10%, while longer-term 2035 maturities reached 10.98%. Total secondary market volume for March 17 was Rs. 16.13 Bn. • Liquidity & Forex: The money market maintained a net liquidity surplus of Rs. 341.21 Bn. In the forex market, the USD/LKR spot rate closed slightly wider at 311.30/311.50, with a daily traded volume of US$ 57 Mn. _Note: Data based on provisional auction and market results as of March 19, 2026._
📈 CSE Rebounds: ASPI Gains 222 Points After 5-Day Slump
The Colombo stock market staged a recovery today (March 18), breaking a five-session losing streak as investor sentiment improved. • Market Performance: The All Share Price Index (ASPI) climbed by 222.54 points to close at 20,640.63. • Blue-chip Movement: The S&P SL20 Index, representing the market's most liquid stocks, saw a marginal gain, ending the session at 4,058. • Liquidity: Market turnover reached Rs. 5.27 billion, reflecting active participation during the rebound. The recovery provides a much-needed breather for the capital markets and financial services sector following a week of heavy sell-offs.
📈 Asian Markets Rally as Oil Prices Eases Amid Middle East Tensions
Global markets showed resilience on Wednesday as oil prices retreated slightly, providing a temporary breather for Asian equities despite ongoing geopolitical volatility. • Market Performance: MSCI Asia-Pacific index rose 1.2%, while Japan's Nikkei rallied 2%. Chinese blue-chips inched up 0.1% and Hong Kong's Hang Seng gained 0.3%. • Energy Sector: Brent crude dropped 1% to US$ 102.28 per barrel, and WTI fell 1.6%. Despite the dip, the Strait of Hormuz remains largely shut, keeping supply risks high. Analysts warn prices may reprice higher if the blockade persists. • Global Policy Focus: All eyes are on the U.S. Federal Reserve meeting today. Markets are weighing whether the oil shock will lead to stickier inflation, potentially shifting the "dot plot" to project zero rate cuts for 2026. • Currency & Yields: The U.S. Dollar weakened slightly, with the Euro at $1.1539. The Japanese Yen steadied at 159 per dollar, avoiding the critical 160 intervention level. 10-year Treasury yields remained flat at 4.20%.
Oil Prices Ease as Iraq Exports Resume Amid Middle East Tensions 📉
• Market Impact: Global oil prices edged lower on Wednesday, paring back previous sharp gains. Brent crude futures fell 0.65% to US$ 102.75 per barrel, while U.S. WTI dropped 1.23% to US$ 95.03 per barrel. • Supply Relief: The Iraqi government and Kurdish authorities reached a deal to resume exports via Turkey’s Ceyhan port. Flows are expected to start at 100,000 bpd; however, analysts note this remains a minor fraction of the 2 Mn bpd Iraq has lost during the ongoing conflict. • Geopolitical Risks: Despite the export deal, Brent remains above US$ 100 as the conflict with Iran shows no signs of de-escalation. Total production from Iraq’s southern fields has plunged 70% to 1.3 Mn bpd due to the closure of the Strait of Hormuz, a vital chokepoint for 20% of global supply. • Regional Volatility: Tensions spiked following the death of Iran’s security chief in an Israeli attack and subsequent U.S. military strikes on Iranian coastal missile sites. Iran has reportedly rejected all de-escalation offers from intermediaries. • Inventory Data: U.S. crude stocks rose by 6.56 Mn barrels for the week ended March 13 (API data), significantly higher than the 380,000-barrel increase anticipated by analysts, providing further downward pressure on prices.
📉 CSE Slump Continues: Rs. 1.1 Trillion Wiped Since Middle East Conflict
The Colombo Stock Exchange (CSE) failed to hold early gains yesterday as panic selling intensified, driven by regional instability and domestic economic concerns. • Market Performance: The All Share Price Index (ASPI) fell by 2.49% (521.17 points) to 20,418.09. The S&P SL20 dropped 2.11% to 5,760.99. • Value Erosion: Since the Middle East conflict began on Feb 28, the market has lost over Rs. 1.1 trillion in value. • Investor Sentiment: Panic selling among retail investors was triggered by margin call fears, fuel shortages, and potential power cuts. 227 counters declined, while only 34 gained. • Sector Activity: The Capital Goods sector led turnover (32%), followed by Banking and Diversified Financials (25%). Key decliners included COMB, HAYL, DOCK, NDB, and AEL. • Foreign Interest: Foreign investors remained net sellers with an outflow of Rs. 104.7 million yesterday, bringing the total year-to-date net foreign outflow to Rs. 17.2 billion. • Liquidity: Daily turnover stood at over Rs. 5 billion with 274 million shares traded, though High Net Worth (HNW) participation remained subdued.
📉 Colombo Bourse Extends Losing Streak as ASPI Drops Sharply
The Colombo stock market continued its downward trend today, marking the fifth consecutive day of losses with a significant decline in key indices. • Overall Figures: The All Share Price Index (ASPI) fell sharply by 521.17 points (2.49%), closing at 20,418.09. • Blue-chip Performance: The S&P SL20 Index, which tracks the most liquid stocks, declined by 123.94 points to settle at 5,760.99. • Market Liquidity: Total market turnover for the session was recorded at Rs. 5.02 Bn. • Market Sentiment: This session marks a continued bearish streak for the Colombo Stock Exchange (CSE), reflecting a week of sustained selling pressure. Based on provisional daily market data.
Oil Prices Surge 2%+ Amid Strait of Hormuz Disruptions 📈
• Global Market Impact: Brent crude jumped 2.5% to US$ 102.69/bbl, while WTI rose 2.6% to US$ 95.92/bbl. This follows a volatile period where the Strait of Hormuz—handling 20% of global oil and LNG trade—remains largely shut due to the three-week-old U.S.-Israeli conflict with Iran. • Supply Risks & Logistics: Brent forecasts for 2026 have been revised upward, with Standard Chartered projecting US$ 85.50 (up from $70) due to potential prolonged disruptions. The UAE, a major OPEC producer, has reportedly cut production by more than half. • Sri Lankan Context: As a net importer of refined petroleum and fossil fuels, sustained prices above $100/bbl pose significant risks to Sri Lanka’s trade balance and domestic energy costs. Rising global energy prices typically exert pressure on the electricity and transport sectors, potentially impacting the cost of production for apparel & textiles and tea exports. • Geopolitical Strain: Supply remains tight as U.S. allies rebuff calls for naval escorts in the Gulf. The IEA is considering further strategic reserve releases to curb inflation and rising costs. Israel indicates at least three more weeks of military operations, suggesting continued market volatility.
Market Alert: Bond Yields Rise and Rupee Depreciates Amid Global Oil Surge 📈
The secondary bond market saw yields trend upward as global oil prices remained elevated, with Brent crude surpassing US$ 100 per barrel. Market activity remained subdued as investors adopted a cautious stance due to Middle East unrest and shipping disruptions. • Secondary Bond Market Yields on selected maturities closed higher with limited trading volumes: • 2028: 01.07.28 at 9.25%; 15.12.28 at 9.30% • 2029: 15.12.29 at 9.65% • 2030: 01.03.30 traded between 9.70% – 9.75% • 2031-2034: 15.03.31 at 9.90%; 01.10.32 at 10.30%; 15.09.34 at 10.82% • Total transacted volume (March 13): Rs. 7.93 Bn • Currency & Forex The LKR depreciated further against the US Dollar, closing at Rs. 311.50/311.60 compared to the previous close of Rs. 311.15/311.25. • Total USD/LKR traded volume (March 13): US$ 36.35 Mn • Money Market Liquidity The market recorded a net liquidity surplus of Rs. 245.53 Bn. • The Central Bank (CBSL) drained Rs. 88 Bn via overnight repo at 7.46%. • Rs. 157.53 Bn was deposited at the Standing Deposit Facility Rate (SDFR) of 7.25%. • Weighted average rates: Call Money at 7.59%; Repo at 7.61%. _Data based on provisional market reports from Wealth Trust Securities and CBSL._
📉 CSE Plunges 3.5% as Mideast Tensions Wipe Out Rs. 701 Bn
The Colombo Stock Exchange (CSE) hit a six-month low on Monday, driven by investor panic over escalating conflict in the Middle East. Since 28 February, the market has seen a massive value erosion of approximately Rs. 701 Bn. • Market Performance Overview The All Share Price Index (ASPI) dropped 3.47% (753.29 points) to close at 20,939.26. The blue-chip S&P SL20 index fell 3.28% to 5,884.93, marking an 11.3% decline since the onset of regional instability. • Sector & Counter Movements Market breadth was heavily negative, with 261 counters declining against only 12 gainers. Key heavyweights leading the slide included John Keells Holdings (JKH), Commercial Bank (COMB), HNB, Dialog, and DFCC. • Trading Activity & Turnover Daily turnover reached Rs. 6.6 Bn with 588 million shares traded. • Diversified Financials led turnover at 26%. • Capital Goods and Banking sectors collectively contributed 38%. • Ceylon Land and Equity was the top turnover contributor (Rs. 1.25 Bn). • Investor Sentiment Retail activity remained elevated due to panic-selling, while High Net Worth (HNW) participation was subdued. Despite the slump, foreigners remained net buyers with an inflow of Rs. 54.4 Mn, as some investors engaged in bargain-hunting at discounted price levels.
Mixed Asia-Pacific Performance Amid Surging Oil Prices 📈
Asia-Pacific equity markets showed mixed results yesterday as geopolitical tensions between the U.S. and Iran pushed global energy benchmarks higher, impacting regional sentiment and trade. • Energy Market Surge: Global oil prices climbed significantly, with Brent crude rising 0.48% to US$ 103.7 per barrel and U.S. crude hovering near US$ 98.7. This surge followed potential military escalations targeting Iran’s primary export infrastructure. • Regional Market Winners: • Hong Kong: The Hang Seng Index led gains, rising 1.45% to close at 25,834.02. • South Korea: The Kospi advanced 1.14% to end at 5,549.85. • Regional Market Laggards: • Australia: The S&P/ASX 200 declined 0.39%, closing at 8,583.40. • Japan: The Nikkei 225 edged down 0.13% to 53,751.15. • China: The CSI 300 remained largely flat at 4,671.56, despite positive domestic economic data. • Impact on Sri Lanka: Rising global oil prices (above US$ 100 a barrel) typically pressure Sri Lanka’s energy sector and foreign exchange reserves due to increased import costs, potentially impacting the cost of production for manufacturing and logistics.
📉 ASPI Slumps Below 21,000 Mark for First Time in Six Months
The Colombo Stock Exchange (CSE) faced a sharp downturn during today’s session (March 16), with key indices hitting multi-month lows amid significant selling pressure. • Market Performance: The All Share Price Index (ASPI) dropped below the critical 21,000 threshold to close at 20,939.26. This is the lowest level recorded since September 18, 2025. • Blue-Chip Decline: The S&P SL20 Index, representing the top 20 largest and most liquid stocks, slipped 199.72 points to end at 5,884.93. • Turnover & Liquidity: Total market turnover reached Rs. 6.59 Bn, reflecting active participation despite the bearish sentiment. • Investor Activity: • Domestic participation dominated the market, with domestic purchases at Rs. 6.49 Bn against sales of Rs. 6.54 Bn. • Foreign investors remained net buyers, recording Rs. 97 Mn in purchases against Rs. 42 Mn in sales. The decline marks a notable shift in investor sentiment for the banking and diversified financials sectors as the market adjusts to new support levels. _Note: Based on provisional market data for March 16, 2026._
Global Markets Wary as Hormuz Tensions Elevate Energy Risks 📈
Regional and global markets started the week on a cautious note as ongoing hostilities in the Gulf impact the inflation outlook, directly affecting Sri Lanka’s energy import costs and broader economic stability. • Energy & Commodities: Oil prices remain elevated with Brent rising 0.8% to US$ 104.01/bbl. While potential shipping coalitions in the Strait of Hormuz offer some hope, the "risk premium" remains high, threatening net energy importers. Gold held steady at a significant US$ 5,012/oz. • Monetary Policy: Major central banks (U.S., UK, EU, Japan) are expected to pause rate hikes this week due to "higher inflation and lower growth" forecasts. The Fed is almost certain to hold rates on Wednesday, with June easing probabilities dropping to 26% from 69%. The Reserve Bank of Australia is the outlier, with a projected 0.25% hike to 4.1%. • Market Performance: • Asia: Japan’s Nikkei dipped 0.8%; Chinese blue chips eased 0.5% despite retail sales topping forecasts. • Currencies: The U.S. Dollar remains a liquidity stronghold. The Euro is near a 7-month low (US$ 1.1445), while the Yen sits near 159.47, approaching intervention territory. • Equities: S&P 500 and Nasdaq futures rose 0.4%, with investor focus shifting to ICT and AI infrastructure developments at the Nvidia GTC conference. • Strategic Outlook: High defense spending and energy shocks have driven double-digit increases in global bond yields (10-year Treasuries at 4.267%). For Sri Lanka, these global shifts highlight the importance of diversification and monitoring external shocks to the apparel and tea export supply chains. _Data based on provisional Monday market opening reports._
📈 Secondary Bond Market Stabilizes Amid Global Volatility
The secondary Government Bond market closed the week broadly steady despite a volatile start triggered by fluctuating global oil prices and Middle Eastern tensions. • Market Sentiment & Yields Yields spiked early in the week as Brent crude approached US$ 120/barrel but retraced as oil prices corrected. Buying interest from banks and institutional investors helped anchor rates. • 2027 Maturities: 01.05.27 traded at 8.40%; 15.09.27 eased to 8.55% after hitting 8.80%. • 2028-2029 Tenors: 15.02.28 eased to 9.10%; 15.09.29 fell to 9.50% from a 9.65% high. • Long End: 15.06.35 maturity dipped to 10.80% from an intraweek high of 11.00%. • Auctions & Liquidity • Treasury Bills: Weighted averages dipped slightly for 91-day (7.61%) and 182-day (7.91%) bills; 364-day held at 8.23%. • Treasury Bonds: Auction on March 12 raised Rs. 87.02 Bn (66.94% of offer) with rates in-line with the secondary market. • Liquidity: System surplus remains high at Rs. 406.78 Bn. • External Sector & Forex • Foreign Holdings: Recorded a net outflow of Rs. 4.50 Bn, bringing total holdings to Rs. 158.67 Bn. • Currency: The USD/LKR spot rate depreciated slightly to close at Rs. 311.15/311.25, compared to the previous week's Rs. 310.80/311.20. _Note: Based on provisional market data for the week ending March 13, 2026._
## 📈 Global Oil Surge Amid Middle East Conflict: Impact on SL Economy
Oil prices are set for further gains as the U.S.-Israeli conflict with Iran enters its third week, triggering the world’s largest supply disruption. With the Strait of Hormuz closed—a chokepoint for 20% of global supply—crude futures have surged over 40% this month to their highest levels since 2022. • Supply & Infrastructure: Global supply is expected to drop by 8 million bpd in March. While UAE’s Fujairah terminal (1% of world demand) has resumed loading, major hubs like Iran’s Kharg Island and Saudi Arabia's Ras Tanura remain highly vulnerable. • Global Response: The IEA is releasing a record 400 million barrels from strategic stockpiles to combat spikes. Diplomatic negotiations have stalled, with both the U.S. and Iran maintaining defiant stances. • Sri Lankan Context: As a net oil importer, Sri Lanka faces significant pressure on foreign exchange reserves and domestic energy costs. Sustained high prices could impact the transportation and manufacturing sectors, potentially thinning trade margins for apparel & textiles and tea exports due to rising logistics costs. The situation remains volatile based on provisional market data, with further price volatility expected at Monday’s market open. ---
📉 CSE Weekly Update: Rs. 348 Bn Wiped Out Amid Mideast Tensions
The Colombo stock market faced a significant downturn this week, driven by global jitters over the Middle East crisis and oil prices surging above US$ 100 per barrel. • Market Performance: The All Share Price Index (ASPI) plummeted by 4.45% (1,009.36 points) to close at 21,692.55. The S&P SL20 followed suit, dropping 4.34% (276.10 points) to 6,084.65. • Wealth Erosion: A total of Rs. 348.6 Bn in market value was wiped out during the week as investor sentiment turned cautious. • Sector Impact: The Capital Goods sector dominated daily turnover at 43%, while the Banking and Food, Beverage & Tobacco sectors collectively contributed 28%. Major negative contributors included COMB, HNB, HAYL, and NTB. • Trading Activity: Friday’s turnover reached Rs. 5.27 Bn, supported by high-net-worth investor participation in MELS, ACL, and AEL. However, market breadth remained negative with 198 counters declining. • Foreign Interest: Foreign investors remained net sellers, recording a net outflow of Rs. 38.3 Mn. The market remains sensitive to geopolitical escalations and their subsequent impact on national energy costs and global equity trends.
Asian Stocks Slide as Iran Conflict Keeps Oil Near $100 📉
The escalation of the war involving Iran, the U.S., and Israel continues to rattle global markets, driving energy costs up and crushing expectations for central bank rate cuts. • Global Market Impact: Asian equities slumped on Friday, with the MSCI Asia-Pacific index on track for a 1.5% weekly decline. Significant losses were recorded in Japan (Nikkei down 1.3%) and tech-heavy South Korea (down 2%). • Energy & Inflation: Brent crude remains volatile near the US$ 100 per barrel threshold (currently US$ 99.85) as threats to the Strait of Hormuz persist. Rising oil prices have spiked inflation fears, leading traders to scale back Federal Reserve rate cut bets from 50 bps down to just 20 bps for the year. • Currency & Safe Havens: The U.S. Dollar has emerged as the primary safe haven, gaining 2% since the conflict began in late February. The Japanese Yen hovers near 160 per dollar, while Gold is set for a 1% weekly drop as investors pivot toward the dollar and higher-yielding Treasury notes. • Sri Lankan Context: For Sri Lanka, sustained oil prices near US$ 100 pose a significant risk to the trade balance and domestic fuel pricing. Additionally, a stronger dollar and "higher-for-longer" global interest rates may pressure the LKR and complicate international debt dynamics.
📉 Oil Prices Dip as US Eases Russian Supply Curbs
Global oil prices retreated on Friday morning following a strategic US intervention to stabilize markets currently volatile due to conflict in the Middle East. • Overall Market Figures: Brent crude futures dropped by 71 cents (-0.71%) to US$ 99.75 per barrel. US West Texas Intermediate (WTI) fell by 88 cents (-0.92%) to US$ 94.85. This follows a massive 9% surge in both benchmarks on Thursday. • Supply Interventions: The US Treasury issued a 30-day license allowing countries to purchase Russian oil and petroleum products currently stranded at sea. Additionally, a massive coordinated release of 400 million barrels from strategic stockpiles (including 172 million from the US) has been announced to curb skyrocketing energy costs. • Geopolitical Risks: Despite the price dip, significant risks remain as the Strait of Hormuz remains a flashpoint. Iranian leadership has threatened to keep the strait shut, and Iraqi oil ports have reportedly halted operations following attacks on tankers. • Impact on Energy & Logistics: For a net importer like Sri Lanka, these global fluctuations directly influence the power & energy sector and transport costs. While the US license provides temporary relief, the regional escalation continues to threaten global supply chain stability and freight premiums.
📈 Primary Bond Auctions See Positive Rates Amid Undersubscription
The Treasury Bond auctions conducted yesterday yielded weighted average rates below or in-line with secondary market levels, signaling a stable interest rate environment despite moderate participation. • Auction Performance: The government raised Rs. 87.02 billion, reflecting a 66.94% acceptance rate of the Rs. 130 billion on offer. The bid-to-acceptance ratio stood at 2.45 times. • Maturity Breakdown: - 01.03.30: Issued at 9.63% (Undersubscribed). - 15.06.34: Issued at 10.70% (Undersubscribed). - 15.08.36: Issued at 10.80% (Fully subscribed at 1st phase). • Secondary Market: Activity remained subdued as yields consolidated. Traders adopted a conservative stance due to global headwinds from the US-Iran conflict. Notable trades included the 15.09.27 maturity at 8.55% and the 01.11.33 at 10.50%. • Liquidity & Forex: - Market Liquidity: Net surplus recorded at Rs. 319.48 billion. The Central Bank drained Rs. 150 billion via overnight repo at 7.44%. - Currency: The USD/LKR spot exchange rate closed slightly weaker at Rs. 311.00/311.15, compared to the previous close of Rs. 310.85/310.95. - Trade Volume: Total USD/LKR volume for March 10 stood at $ 56.50 million.
CSE Ends Down 1.6% Below 22,000 Points on Mideast Concerns 📉
The Colombo Stock Exchange (CSE) saw sharp declines yesterday as rising global oil prices and Middle East instability weighed on investor sentiment. • Market Performance Overview The All Share Price Index (ASPI) fell by 1.63% (363.43 points) to close at 21,998.12. The blue-chip S&P SL20 dropped 1.71% (107.42 points) to 6,172.28. Since the conflict began on 27 February, the ASPI has recorded a cumulative loss of 7.4%. • Sector & Stock Highlights The Capital Goods sector led daily turnover with a 32% share, followed by Diversified Financials and Food, Beverage, and Tobacco (35% combined). Major laggards included JKH, HNB, and MELS. Despite the downturn, HNW investor participation remained strong in crossing transactions. • Trading & Foreign Inflow • Market Turnover: Over Rs. 4.1 Bn on 140 Mn shares. • Net Foreign Inflow: Rs. 32.2 Mn (Net buying topped in PKME). • Market Breadth: Heavily negative with 207 decliners against 36 gainers. • Market P/E: 10.88. Rising crude prices and shipping route disruptions remain key risks for the transport and manufacturing sectors, contributing to the current 1,746-point ASPI decline over the last two weeks.
Oil Prices Surge: Brent Hits US$ 100 Amid Middle East Escallation 📈
Global energy markets witnessed a sharp spike on Thursday as intensified conflict in the Middle East fueled fears of prolonged supply disruptions through the Strait of Hormuz. • Price Action: Brent futures jumped 9.28% (up US$ 8.54) to US$ 100.52 per barrel. U.S. WTI crude rose 8.28% to US$ 94.47. • Supply Disruptions: Attacks on oil and transport facilities, including explosive-laden boat strikes on two foreign tankers in Iraqi waters, have heightened security risks. Iran’s military command warned of prices potentially reaching US$ 200 per barrel if regional instability persists. • Emergency Measures: The International Energy Agency (IEA) has agreed to a record release of 400 million barrels of oil (with the U.S. contributing 172 million barrels) to stabilize the market. • Market Outlook: Analysts from ING and Moomoo ANZ note that while IEA reserves provide temporary relief, a sustained price drop is unlikely until oil flows resume through the Strait of Hormuz. Economic Context: For Sri Lanka, rising global oil prices typically exert significant pressure on foreign exchange reserves, increase the cost of thermal power generation, and impact the transportation sector.
📈 T-Bill Yields Dip Marginally Amid Undersubscribed Rs. 130 Bn Auction
The weekly Treasury Bill auction saw a slight decline in short-term yields, though the offer remained undersubscribed during the initial competitive bidding phase. • Auction Results: Only Rs. 96.72 Bn (74.40%) of the Rs. 130 Bn offered was raised. Phase II remains open for the 182-day and 364-day maturities. • Yield Movements: • 91-day: 7.61% (down 2 bps) • 182-day: 7.91% (down 1 bp) • 364-day: 8.23% (unchanged) • Secondary Bond Market: Rates remained broadly steady with healthy transaction volumes. Notable trades included the 15.09.27 maturity at 8.56% and the 01.06.33 at 10.50%. Total transacted volume reached Rs. 7.51 Bn. • Liquidity & Money Market: A significant net liquidity surplus of Rs. 394.53 Bn was recorded. The Central Bank absorbed Rs. 240 Bn via overnight and seven-day repo auctions to manage excess liquidity. • Forex Market: The LKR showed slight appreciation, with the USD/LKR spot closing at 310.85/310.95 compared to the previous day's 310.90/311.00. Daily traded volume stood at US$ 108.90 Mn.
CSE Dips 0.12% as Profit-Taking Halts Recovery 📉
The Colombo Stock Exchange (CSE) reversed its previous gains as early positive sentiment was overshadowed by mid-session profit-taking, leading to a marginal decline in both key indices. • Market Performance: The ASPI fell by 0.12% (26.97 points) to close at 22,351.55. The S&P SL20 remained nearly flat, dropping 0.01% (0.72 points) to 6,279.70. • Trading Activity: Market turnover exceeded Rs. 4.3 Bn with over 219 million shares traded. Retail investors drove the majority of the volume, while High Net Worth (HNW) activity remained subdued. • Sector Highlights: Diversified Financials: Led the market with a 24% share of daily turnover. Capital Goods & Banking: Collectively contributed 31% to the total turnover. Specific Stocks: Notable retail interest was seen in LCBF, SCAP, SHL, and CRL. • Investor Sentiment: Market breadth was negative, primarily dragged down by MELS, DOCK, CARS, SPEN, and LLUB. • Foreign Interest: Foreign investors were net sellers, resulting in a net outflow of Rs. 21.36 million.
📉 ASPI Dips Following Early Gains: CSE Daily Market Update
The Colombo Stock Exchange (CSE) experienced a volatile session today, with early morning momentum failing to hold through the close. • Market Performance: The All Share Price Index (ASPI) fell by 26.97 points (-0.12%) to close at 22,351.55. Despite an early surge past the 22,500 mark, the index shifted to negative territory by midday. • Blue Chips: The S&P SL20, representing the market’s top 20 companies, remained largely stable, declining marginally by 0.72 points to end at 6,279.70. • Turnover & Liquidity: Total market turnover stood at a healthy Rs. 4.31 Bn, reflecting active participation across the board. • Investor Participation: • Domestic: Remained the primary driver with Rs. 4.22 Bn in purchases and Rs. 4.20 Bn in sales. • Foreign: Recorded a net foreign outflow of Rs. 22 Mn, with purchases at Rs. 91 Mn against sales of Rs. 113 Mn.
### Global Market Update: Oil Volatility & Dollar Strength Amid Middle East Conflict 📈
Market Sentiment & Equities • Global markets remain anxious due to contradictory signals from the U.S.-Israel-Iran conflict. • Despite the tension, Asian shares saw a reprieve: Japan’s Nikkei rose 2.1% and South Korea’s Kospi jumped 3.2%. • U.S. futures (S&P 500 and Nasdaq) both added 0.4%, while European EUROSTOXX 50 futures slipped 0.3%. Energy & Oil Prices • Brent crude fluctuated, trading 0.2% higher at US$ 87.89/bbl, while U.S. crude held at US$ 83.47/bbl. • Prices briefly softened following reports that the IEA proposed the largest-ever release of strategic oil reserves to counter supply shocks. • Major risks persist regarding the Strait of Hormuz and potential long-term damage to energy infrastructure. Currencies & Safe Havens • The US Dollar remains the primary safe-haven asset; the Greenback gained 0.1% against the Yen (158.25). • Inflation fears have pressured bond markets, with the U.S. 10-year Treasury yield steady at 4.1460%. • Spot Gold rose 0.5% to US$ 5,215.60/oz as investors balance gains against equity market losses. Economic Outlook • Central banks are expected to maintain a hawkish stance (higher interest rates) to combat potential inflationary spikes driven by energy costs. • Investors are awaiting the U.S. February inflation reading due later today for further direction. _Note: Based on international market data as of March 11, 2026._
📈 CSE Rebounds 2.17% as Global Oil Prices Ease
The Colombo stock market staged a sharp recovery yesterday, reversing losses from recent panic selling as global oil prices retreated below US$ 95 per barrel. • Market Performance: The ASPI surged by 2.17% (+474.38 points) to close at 22,378.52, while the S&P SL20 rose 2.47% to 6,280.42. Total turnover reached Rs. 4.48 Bn with 236 million shares traded. • Sector Drivers: Gains were broad-based, led by the banking and capital goods sectors. The capital goods index climbed 2.96%, bolstered by heavy trading in Softlogic Holdings. The food, beverage & tobacco sector followed with a 2.69% increase. • Key Gainers: Top blue-chip contributors included Hatton National Bank (HNB), Sampath Bank (SAMP), Commercial Bank (COMB), John Keells Holdings (JKH), and Dialog Axiata (DIAL). Notable price appreciation was also seen in Softlogic Capital and Renuka Hotels. • Investor Activity: While retail and HNW participation remained steady, foreign investors were net sellers, recording a net outflow of Rs. 155.4 Mn. • Economic Context: The rebound mirrors positive trends in Asian markets following signals of potential de-escalation in Middle East tensions, directly impacting energy cost expectations for the Sri Lankan economy.
Oil Price Slump Triggers Secondary Bond Market Relief Rally 📈
A sharp decline in global oil prices (Brent crude falling below US$ 95) has sparked a significant relief rally in Sri Lanka’s Secondary Government Bond market, easing inflation fears for the energy sector. • Market Performance: Yields compressed across the curve as institutional buying interest surged. Notable trades include the 01.06.33 maturity dropping 10bps to 10.50% and the 15.02.28 maturity trading at 9.10%. • Macroeconomic Buffer: The rally is supported by strong fundamentals, with Gross Official Reserves hitting a six-year high of US$ 7.28 Bn in February. The current account recorded a surplus of US$ 369.7 Mn in January 2026. • Currency & Liquidity: The Sri Lankan Rupee appreciated to Rs. 310.90/311.00 against the USD. Market liquidity remains ample with a net surplus of Rs. 335.36 Bn. • Upcoming Auction: Focus shifts to today’s Rs. 130 Bn T-Bill auction. The offered amount is lower than the maturing volume of Rs. 149.39 Bn, following a heavily undersubscribed auction last week. _Data based on Wealth Trust Securities and CBSL provisional figures._
Global Oil Prices Plunge 6% Amid De-escalation Hopes 📉
Oil prices retreated sharply on Tuesday after hitting three-year highs, as U.S. President Donald Trump predicted a swift end to Middle East tensions, easing fears of prolonged global supply disruptions. • Overall Figures: - Brent crude futures fell 6.6% (US$ 6.51) to US$ 92.45 a barrel. - U.S. WTI crude dropped 6.5% (US$ 6.12) to US$ 88.65 a barrel. - This follows a surge where prices peaked near US$ 120 on Monday. • Market Drivers: - President Trump indicated the conflict involving Iran is "very complete," suggesting a shorter timeframe than initially estimated. - Reports indicate the U.S. is considering easing energy sanctions on Russia and releasing emergency crude stockpiles to stabilize the market. - Despite threats from Iran’s Revolutionary Guards to halt regional exports, prices remained under downward pressure. • Supply Context: - Significant production cuts remain a factor, with Iraq slashing output by 70% and Saudi Arabia beginning trims. - Analysts expect high volatility to continue, with a projected trading range between US$ 75 and US$ 105. • Impact on Sri Lanka: - Lower global oil prices are critical for Sri Lanka’s transportation and manufacturing sectors, directly influencing the national fuel bill and inflation trajectories.
Market Plunge: ASPI Drops 3.5% as Global Oil Spikes 📈
The Colombo Stock Exchange (CSE) faced significant downward pressure on Monday as global oil prices surged above US$ 115 per barrel, triggering panic selling across the board. • Market Indices: The All Share Price Index (ASPI) fell by 3.51% (797.77 points) to close at 21,904.14, its lowest level since December 2025. The S&P SL20 also declined by 3.65%. • Sector Impact: • Banking: The primary laggard, contributing 32% of turnover but losing 3.45% in its sector index. Key declines included Commercial Bank (-4.1%) and Sampath Bank (-3.4%). • Capital Goods: Down 3.82%, heavily impacted by losses in John Keells Holdings (JKH) (-4.3%) and ACL Cables (-3.1%). • Energy: Bucking the trend, Lanka IOC saw price appreciation of Rs. 1.75 as global crude prices rose. • Trading Activity: Market turnover remained healthy at Rs. 5.8 Bn. However, market breadth was overwhelmingly negative with 262 decliners against only 6 gainers. • Investor Sentiment: Selling was largely driven by retail investors reacting to Middle East tensions. Foreign investors remained net sellers with an outflow of Rs. 6.1 Mn, despite CBSL assurances regarding the economy’s resilience to energy shocks.
📉 Pakistan Stock Market Plunges Amid Middle East Tensions
Trade was suspended at the Pakistan Stock Exchange (PSX) after a massive early-morning sell-off triggered by escalating geopolitical instability in the Middle East. • Market Impact: The benchmark index plummeted by 9,780 points during the opening session, settling at 147,715.95 points. • Percentage Change: This represented a sharp 6.21% decrease compared to the previous close. • Trading Halt: PSX authorities enforced a mandatory 45-minute trade suspension after the index breached the 5% circuit breaker threshold. • Economic Context: While specific to Pakistan, such regional volatility often impacts South Asian investor sentiment and creates ripple effects across emerging market portfolios and energy costs.
Global Oil Prices Surge Past US$ 100 Amid Iran Conflict 📈
Global energy markets have been rattled as crude prices eclipsed the US$ 100 threshold for the first time in over three years, driven by escalating conflict in the Middle East. • Market Impact: Brent Crude: Surged 16.5% to US$ 107.97 per barrel. West Texas Intermediate (WTI): Rose 16.9% to US$ 106.22 per barrel. Natural Gas: Increased by 4.6% to US$ 3.33 per 1,000 cubic feet. • Supply Disruptions: The Strait of Hormuz, accounting for roughly 20% of global oil shipments (15 million barrels/day), faces a near-total halt in tanker traffic due to missile and drone threats. Major producers including Iraq, Kuwait, and the UAE have cut production as export capacities are throttled by the conflict. • Economic Implications for Sri Lanka: As a net importer of refined petroleum and crude oil, sustained prices above US$ 100/barrel pose significant risks to Sri Lanka's trade balance and domestic inflation. Rising energy costs typically impact the manufacturing and transportation sectors, potentially increasing the cost of production for key exports like tea and apparel. • Global Outlook: Financial markets remain volatile; S&P 500 and Dow futures are pointing toward a lower opening as investors weigh the impact of higher energy costs on global consumption and inflation.
CSE Ends Week in Red Amid Mideast Tensions 📉
The Colombo stock market concluded a volatile four-day trading week in negative territory, failing to recover from a significant mid-week plunge triggered by regional geopolitical conflict. • Overall Market Performance: The All Share Price Index (ASPI) dropped 4.34% (1,032.15 points) during the week to close at 22,701.91. The S&P SL20 followed suit, declining 4.14% (275.22 points) to finish at 6,360.75. • Sector & Stock Impact: Declines were driven primarily by index-heavyweights in the banking and diversified holdings sectors. Key laggards included JKH, HNB, SAMP, HAYL, and MELS. The capital goods sector dominated daily turnover at 31%, followed by insurance and diversified financials at a combined 29%. • Investor Activity: • Foreign Investors: Recorded a net outflow of Rs. 791.2 million for the week, with yesterday’s net selling reaching Rs. 826 million. • High Net Worth (HNW): Activity remained significant, with off-board transactions accounting for 34.6% (Rs. 1.7 Bn) of total turnover. • Top Turnover: Led by ACL (Rs. 924 Mn), CINS (Rs. 624 Mn), and HVA (Rs. 226 Mn). • Market Breadth: Negative sentiment prevailed as 160 decliners outweighed 80 gainers. Total daily turnover remained robust at over Rs. 5 Bn, despite the bearish trend.
## 📈 Oil Prices Stabilize Despite Strait of Hormuz Risks
Fitch Ratings suggests the effective closure of the Strait of Hormuz following the Iran conflict is likely temporary, mitigating long-term impacts on energy costs and the global economy. • Market Impact & Pricing • Brent oil price forecast remains at US$ 63/bbl for 2026. • Global supply growth (2.4 MMbpd) continues to outpace demand (0.8 MMbpd). • Global inventories reached 8.2 Bn barrels at end-2025, enough to cover a 400-day halt in Strait shipments. • Supply Chain & Logistics • The Strait handles 20 MMbpd, representing 25% of global seaborne oil trade. • Key alternative routes include Saudi Arabia's 5 MMbpd East-West pipeline and UAE’s 1.5 MMbpd bypass to Fujairah. • Major importers China and India receive 50% of the volumes transiting the Strait. • Key Risks for Sri Lanka • While oversupply limits price hikes, any protracted blockage or infrastructure damage would trigger volatility. • As a net oil importer, Sri Lanka remains sensitive to "geopolitical risk premiums" affecting transportation and power generation costs. • Sector Outlook • Stability in global oil prices is a positive signal for Sri Lanka’s manufacturing and logistics sectors, potentially easing inflationary pressure on fuel-dependent industries.
Global Market Turmoil: Oil Surges Amid Middle East Escalation 📈
• Market Overview: Global equity markets faced a severe rout this week as the U.S.-Israel-Iran conflict intensified. The MSCI Asia-Pacific index is on track for its sharpest weekly decline since 2020 (-6.6%), driven by a shift toward cash and safe-haven assets. • Energy & Inflation: Oil prices have seen a massive spike due to supply risks. Brent crude rose to approximately US$ 83 per barrel from US$ 69 just a week ago. For Sri Lanka, sustained upward pressure on energy prices typically threatens headline inflation and increases the cost of imports. • Currency & Rates: The US Dollar recorded its largest weekly gain in 16 months (+1.4%). Expectations for central bank rate cuts have been slashed as investors fear a resurgence in inflation. U.S. 10-year Treasury yields jumped 18 bps this week to 4.14%, tightening global liquidity. • Sector Impact: • Technology: High-growth stocks in Asia tumbled (South Korea's Kospi down -10.5%) as investors booked profits. • Commodities: Gold fell 3.7% weekly to US$ 5,078.88 per ounce, pressured by the stronger dollar and rising bond yields. • Economic Outlook: Analysts warn that direct infrastructure damage to Gulf producers could trigger a global recession. For emerging markets like Sri Lanka, these shifts suggest a challenging environment for debt servicing and foreign exchange stability if global funding conditions continue to tighten.
📈 Secondary Bond Yields Hold Steady Amid Middle East Tensions
The secondary bond market consolidated yesterday with yields remaining broadly stable as investors adopted a cautious stance. Activity levels were moderate, influenced by ongoing geopolitical concerns in the Middle East. • Secondary Bond Market • 15.01.28 maturity traded at 8.95%. • 15.10.29 & 15.12.29 maturities ranged between 9.59%–9.60%. • Long-term yields: 01.06.33 at 10.50% and 15.06.35 between 10.77%–10.795%. • Total transacted volume (Bonds/Bills) for March 4: Rs. 20.40 Bn. • Money Market & Liquidity • Net liquidity surplus: Rs. 336.51 Bn. • CBSL drained Rs. 75.00 Bn via overnight repo auction at a weighted average rate of 7.57%. • Overnight call money and repo rates stood at 7.67% and 7.70%, respectively. • Forex Market • The USD/LKR spot rate closed at Rs. 311.00/311.50, slightly weaker than the previous close of Rs. 310.30/310.60. • Total USD/LKR traded volume for March 4: US$ 96.75 Mn. _Data based on provisional market reports from Wealth Trust Securities and CBSL._
📈 CSE Rebound Extends for Second Session Following Record Dip
The Colombo Stock Exchange continued its recovery for the second consecutive day as value investors capitalized on price corrections following earlier panic selling linked to Middle East tensions. • Market Performance Indices ASPI: Closed at 22,833.53, up by 1.13% (+256.12 points). S&P SL20: Ended at 6,425.80, up by 1.07% (+68.14 points). • Turnover and Liquidity Total Market Turnover reached nearly Rs. 5.7 Bn with over 330 million shares traded. High Net Worth (HNW) and institutional participation were significant, notably in HNB Finance, which contributed Rs. 1.1 Bn to the day's total. • Sector Highlights Diversified Financials: Led daily turnover with a 39% share; sector index rose 1.61%. Key movers included HNB Finance (+Rs. 1.30), LCB Finance (+Rs. 1.70), and LOLC Holdings (+Rs. 12.00). Banking: The second-highest contributor (combined with Food, Beverage & Tobacco for 30% of turnover). Gains were led by Commercial Bank (+Rs. 1.75), DFCC, and NDB. Blue-chips: John Keells Holdings (JKH) and Lanka Milk Foods (+Rs. 6.80) remained top contributors to the positive momentum. • Investor Sentiment Foreign investors emerged as net buyers with a net inflow of Rs. 189.4 Mn. While retail participation remained moderate, the broader market breadth was positive, supported by a robust macroeconomic recovery and attractive valuation discounts in fundamentally sound stocks.
CSE Milestone: CDS Accounts Surpass 1 Million Mark 📈
The Central Depository Systems Ltd. (CDS), a subsidiary of the Colombo Stock Exchange, has officially crossed the 1 million registered accounts milestone ahead of its 35th anniversary this September. • Market Expansion: The threshold reflects aggressive broad-basing of the retail investor market over the last 5 years, driven by the comprehensive digitalisation of the CSE. • Digital Adoption: Growth is attributed to tools like the CSE Mobile App and the CDS eConnect portal, which shifted the market from paperwork-heavy processes to seamless, real-time digital access. • Asset Security: Following a major dematerialisation drive, the CDS now holds 97% of listed equity and 100% of corporate debt in scripless (electronic) form, virtually eliminating risks related to physical certificates. • Diversification: Beyond its core depository role, the Corporate Solutions Unit (CSU) now manages registrar services, Initial Public Offerings (IPOs), and dividend distributions for both listed and unlisted companies. • Future Outlook: A newly formed Research and Development (R&D) unit is tasked with fostering international collaborations and adapting to global financial sector evolutions. This achievement underscores the resilience of Sri Lanka’s capital market infrastructure and its transition into a modern, investor-friendly ecosystem.
### 📈 Global Oil Prices Surge Amid Widening Middle East Conflict
Oil prices climbed on Thursday as the U.S.-Iran war severely disrupts energy flows and forces major production cuts. • Price Movements: Brent crude rose by US$ 1.67 (+2.05%) to US$ 83.07 per barrel. WTI crude increased by US$ 1.94 (+2.60%) to US$ 76.60 per barrel. • Supply Chain Disruptions: The Strait of Hormuz, a conduit for 20% of global energy consumption, remains at a near-halt for the fifth day. Approximately 329 oil vessels are currently trapped in the Gulf. • Regional Impact: • Iraq: Cut output by nearly 1.5 million barrels per day due to lack of storage and export routes. • Qatar: Declared force majeure on gas exports; recovery to normal volumes may take at least a month. • Conflict Context: Hostilities widened following a U.S. strike on an Iranian warship off Sri Lanka. While critical infrastructure remains largely intact, J.P. Morgan notes that elevated shipping risks and logistical constraints are the primary drivers of price volatility. • Economic Outlook: Most oil fields can restart within 2-3 weeks once logistics improve, but current reservoir pressure issues in Iraq and regional storage limits remain significant hurdles for global energy markets.
CSE Rebounds 0.60% as Bargain Hunting Offsets Record Slump 📈
The Colombo Stock Exchange (CSE) bounced back yesterday as value investors moved in to accumulate fundamentally strong shares following Tuesday’s record single-day decline. • Market Indices: The ASPI gained 0.60% (134.03 points) to close at 22,577.41, while the S&P SL20 rose 0.70% to 6,357.66. The market partially erased losses from the previous session's 1,291-point plunge triggered by Middle East tensions. • Turnover & Volume: Total turnover reached Rs. 4.7 Bn with over 171.2 million shares traded. Market breadth was positive with 157 gainers against 77 decliners. • Sector Performance: • Capital Goods: Led activity with a 32% share of turnover (Rs. 1.5 Bn). Key moves included Access Engineering (+Rs. 0.90) and ACL Cables (-Rs. 0.20). • Banking & Blue-Chips: Provided the primary upward momentum. Sampath Bank (+21.6 points) and Commercial Bank were top positive contributors to the ASPI. • Diversified Financials: Second highest turnover contributor, with the sector index rising 1.63%. • Investor Sentiment: Foreign investors remained net sellers with an outflow of Rs. 95.1 Mn. High net worth and institutional interest were noted in construction and engineering counters, though overall sentiment remains cautious due to external geopolitical developments. _Data based on market closing figures for March 4, 2026._
📈 Global Market Volatility Amid Middle East Tensions
Global financial markets faced significant turbulence on Wednesday as escalating Middle East conflict triggered sharp equity losses and spiked energy prices, impacting inflation outlooks. • Energy & Commodities: Brent crude settled at US$ 81.18 per barrel, up nearly US$ 10 from last Friday. Gold rebounded 2% to US$ 5,193 per ounce following a sharp 4% dip. • Equity Market Plunge: Asia saw massive sell-offs with South Korea’s KOSPI suffering a record 12% single-day drop. Japan’s Nikkei 225 fell 3.6%, while Taiwan’s benchmark dropped 4.3% as investors exited the semiconductor sector. • Currencies & Yields: The US Dollar strengthened, rising 1.3% against the Yen this week. The 10-year US Treasury yield rose to 4.08%, reflecting concerns over delayed interest rate cuts. • European Recovery: After a steep two-day decline (the worst since April 2025), the STOXX 600 showed signs of stabilization, rising 1.6% in early trading. Context: For Sri Lanka, sustained high energy prices and global inflation volatility could pressure import costs and debt servicing, despite the recovery in European markets—a key destination for apparel & textiles.
Liquidity Hits Record High as T-Bill Yields Stabilize 📈
• Money Market Liquidity: Daily net liquidity surplus surged to Rs. 403.77 Bn, crossing the 400 billion mark for the first time, up from Rs. 332.49 Bn the previous day. The Central Bank moved to drain Rs. 150 Bn via overnight and seven-day Repo auctions. • T-Bill Auction: Yields held broadly steady, ending a six-week downward streak. - 91-day: 7.63% (Unchanged) - 182-day: 7.92% (Unchanged) - 364-day: 8.23% (Slight dip of 1 basis point) The auction was notably undersubscribed, raising only Rs. 47.83 Bn (39.86%) of the Rs. 120 Bn offered. • Secondary Bond Market: Activity remained healthy with a transacted volume of Rs. 15.96 Bn. Yields on the short end edged up slightly, while longer-dated maturities consolidated, with the 01.06.33 bond trading at 10.50%. • Forex Market: The USD/LKR spot rate closed slightly weaker at 310.30/310.60, compared to the previous close of 310.10/310.30. Total traded volume stood at US$ 100.90 Mn. _Note: Based on provisional market data from Wealth Trust Securities and CBSL._
February National Tea Sales Average Declines Slightly 📈
Sri Lanka’s tea industry saw mixed results in February 2026, with the national average experiencing a marginal dip compared to both the previous month and the prior year. • Overall National Average: Recorded at Rs. 1,152.11 (US$ 3.72), reflecting a month-on-month (MoM) decrease of Rs. 12.43 (US$ 0.04) from January 2026. On a year-on-year (YoY) basis, the average fell by Rs. 16.82 (US$ 0.24) against February 2025. • High Grown Sector: Remained a bright spot, posting an increase of Rs. 15.90 (US$ 0.06) MoM. It also outperformed last year's figures with a YoY gain of Rs. 53.31. • Medium Grown Sector: Experienced a negative variance, dropping by Rs. 6.03 (US$ 0.02) MoM. The YoY decline was more significant, falling by Rs. 46.91 (US$ 0.31). • Low Grown Sector: Noted the sharpest decline for the month, dropping by Rs. 26.38 (US$ 0.08) MoM. Compared to January 2026, the sector showed a negative variance of Rs. 30.25 (US$ 0.28). _Source: Forbes and Walker Ltd. (Provisional Data)_
📈 CSE Recovers Following Record Single-Day Slump
The Colombo Stock Exchange showed signs of stability today (March 4) as indices regained ground following the largest single-day decline in its history. • Market Indices The All Share Price Index (ASPI) rose by 134.03 points to close at 22,577.41. The blue-chip S&P SL20 Index followed suit, advancing by 44.01 points to settle at 6,357.66. • Trading Activity Market turnover was recorded at Rs. 4.68 billion, reflecting a significant contraction in volume compared to the previous day’s turnover of Rs. 9.56 billion. • Market Sentiment While the indices moved into positive territory, the total turnover for the day was less than half of yesterday’s historic session, suggesting a cautious approach by investors as the financial services and capital markets sectors stabilize after extreme volatility.
Secondary Bond Yields See-Saw Amid Geopolitical Tension 📈
The Sri Lankan financial market experienced a volatile start to the week as the secondary bond market and forex market reacted to escalating Middle East tensions. Despite an initial spike in yields, late-session buying interest led to a partial recovery. • Bond Market Performance Yields fluctuated sharply before closing higher day-on-day. Key trades included: Short-term: 2026 maturity at 8.30%; 2028 maturity at 9.00%. Medium to Long-term: 2029 maturities traded between 9.45% - 9.63%, while 2035 bonds reached 10.74%. Healthy transaction volumes were recorded as investors adjusted to global developments. • Upcoming T-Bill Auction A total of Rs. 120 Bn in Treasury Bills is on offer today: 91-day: Rs. 15 Bn 182-day: Rs. 70 Bn 364-day: Rs. 35 Bn The total offer is slightly below the maturing volume of approximately Rs. 125.95 Bn. • Currency & Liquidity Rupee Depreciation: The USD/LKR spot rate closed weaker at Rs. 310.10/310.30, compared to the previous close of Rs. 309.29/309.32, triggered by regional uncertainty. Market Liquidity: Remained high with a net surplus of Rs. 332.49 Bn. The Central Bank drained Rs. 75 Bn via overnight repo at 7.60%. • Context This volatility follows six consecutive weeks of declining yields in the primary market. Last week’s auction saw rates for 91-day, 182-day, and 364-day bills ease to 7.63%, 7.92%, and 8.24% respectively. _Note: Based on provisional market data from Wealth Trust Securities._
📉 Global Markets Plunge as Mideast Tensions Drive Oil Surge
Global equity markets faced a sharp sell-off on Tuesday as escalating conflict involving Iran fueled fears of sustained economic damage. The downturn was led by soaring energy costs, with oil prices approaching the critical US$ 100 per barrel threshold. • Stock Market Impact: Wall Street saw major declines with the S&P 500 dropping 2.4%, marking its worst performance since late 2024. The Dow Jones shed 1,232 points (2.5%), while the Nasdaq fell 2.7%. • Regional Breakdown: Asia: South Korea’s Kospi plunged 7.2%, its steepest decline in nearly two years, driven by its status as a major energy importer. Japan’s Nikkei 225 dropped 3.1%. Europe: Germany’s DAX lost 3.9% as natural gas prices surged due to regional instability. • Commodities: Gold prices fell 4.9% to US$ 5,051 per ounce, retreating from recent highs above US$ 5,300 as investors recalibrated "safe-haven" positions. • Relevance to Sri Lanka: As a net importer of fuel and energy, the spike toward US$ 100 oil poses significant risks to Sri Lanka's trade balance and domestic inflation. Sustained global volatility may also impact investor appetite for emerging market debt and ICT/BPM service exports. _Note: Summary based on provisional global market data as of March 4, 2026._
📉 CSE Plunges 5.4% as Middle East Tensions Spark Record Point Drop
The Colombo Stock Exchange experienced a historic sell-off yesterday as escalating Iran-Israel geopolitical tensions triggered panic selling and a 30-minute circuit breaker. • Market Performance: The ASPI plummeted by 1,290.68 points (5.4%) to 22,443.38, marking its largest single-day point drop in history. The active S&P SL20 also fell significantly by 322.32 points (4.9%) to 6,313.65. • Trading Activity: Despite the initial crash, bargain hunting by value investors led to a robust turnover of Rs. 9.6 Bn, which is 62.9% above the monthly average. Market breadth was overwhelmingly negative, with 269 counters ending in the red. • Sector & Stock Highlights: • The Capital Goods sector led turnover (28%), followed by Banking and Food, Beverage & Tobacco (32% combined). • Key laggards included COMB, SAMP, HNB, JKH, and HAYL. • Contrarian gains were seen in only 5 counters, led by LIOC. • Investor Sentiment: Foreign investors were net sellers with an outflow of Rs. 59.6 Mn. While High Net Worth (HNW) participation remained subdued, retail activity was notably strong as investors sought attractive valuations following the initial dip.
### Middle East Tensions Jolt Bond Yields and Rupee 📈
Geopolitical instability in the Middle East triggered immediate volatility in Sri Lanka's financial markets at the start of the week, characterized by a sharp spike in yields and currency fluctuations. • Secondary Bond Market: Yields surged during early trade as an immediate reaction to regional tensions. A firm rebound followed as buyers entered at higher yield levels, though closing quotes remained higher than the previous session. Trading volumes remained robust as investors recalibrated positions amid the evolving situation. • Foreign Exchange (LKR): The Sri Lankan Rupee experienced intraday volatility against the US Dollar. The currency moved between a high of Rs. 309.70 and a low of Rs. 310.40. The Rupee ultimately settled at the weaker closing level against the greenback. • Market Sentiment: While the initial sell-off was sharp, the subsequent recovery indicates underlying demand, though geopolitical risks continue to weigh on the financial services sector and investor risk appetite.
CSE Trading Temporarily Halted After 5% Index Drop 📉
• Overall Market Activity: Trading at the Colombo Stock Exchange (CSE) was temporarily halted today, March 3, 2026, following a sharp decline in the S&P SL20 index. • The Trigger: The S&P SL20 index fell by more than 5% compared to its previous close, triggering an automatic market circuit breaker designed to mitigate volatility. • Recovery Schedule: The CSE announced that regular trading is expected to resume at 10:01 a.m., following a 30-minute cooling-off period after the initial halt. • Market Context: This halt underscores current volatility within the Financial Services and Equity markets, often influenced by investor sentiment regarding national economic indicators. (Based on provisional CSE data).
📈 Wall Street Remains Resilient Amid Middle East Volatility
U.S. markets ended Monday with mixed results as investors "bought the dip" following coordinated U.S. and Israeli air strikes on Iran. Despite initial shocks, tech-driven optimism largely offset geopolitical concerns. • Overall Market Figures: - S&P 500: Up 0.04% to 6,881.60 points. - Nasdaq Composite: Gained 0.36% to 22,748.86 points. - Dow Jones: Slipped 0.15% to 48,904.78 points. • Sector Performance: - Energy: U.S. crude rose 6% to $71.23; Brent up 6.68% to $77.74 per barrel. - Defense: The Dow Jones U.S. Defense Index gained as conflicts escalated. - Tech/AI: Shares like Nvidia and the "Magnificent Seven" led a late-session recovery, fueled by ICT/BPM productivity optimism. • Impact on Sri Lanka: Volatile energy prices remain a critical watchpoint for Sri Lanka’s import costs. While U.S. tech resilience supports global ICT/BPM sentiment, surging oil prices could pressure national inflation if Brent crosses the "emotional trigger" of US$ 100 per barrel. • Corporate Highlights: AES Corp fell 17.8% following a US$ 33.4 Bn acquisition deal by a GIP-led consortium at a discount price.
## 📈 Safe-Haven Demand Surges: Gold Hits New Highs Amid Middle East Conflict
Gold prices rose for a fifth consecutive session as the escalation of U.S. and Israeli air strikes against Iran intensified regional instability, driving investors toward safe-haven assets. • Gold Performance: Spot gold rose 1% to reach US$ 5,377.21 per ounce, while U.S. gold futures for April delivery climbed 1.5% to US$ 5,391.90. Prices are currently at their highest levels in over four weeks. • Regional Impact: Conflict escalation has led to the reported closure of the Strait of Hormuz, a critical maritime route. This move threatens approximately 20% of global oil flows, risking significant inflationary pressure on energy imports and global logistics. • Currency Dynamics: Despite a strong U.S. Dollar (hovering near a five-week high), gold continues to trade as a primary risk hedge due to heightened geopolitical uncertainty and threats of further military action. • Other Precious Metals: • Spot Silver: Up 1.4% to US$ 90.67 per ounce. • Platinum & Palladium: Gained 0.6% and 1.6% respectively. The ongoing disruption to shipping and potential spikes in energy costs remain key monitorables for Sri Lanka’s import bill and inflation outlook. _Note: Based on reported market data as of March 3, 2026._
Global Oil Prices Surge Amid Escalating Middle East Conflict 📈
Oil markets saw a third consecutive day of gains as a widening U.S.-Israeli conflict with Iran puts energy infrastructure and global supply chains at significant risk. • Price Movements: Brent crude futures rose 1.4% to US$ 78.83/bbl, following a volatile Monday where prices peaked at US$ 82.37 (highest since Jan 2025). WTI crude increased 1% to US$ 71.97/bbl. • Supply Bottlenecks: The Strait of Hormuz, a conduit for 20% of global oil demand and LNG, is effectively closed. Iran has threatened to fire on vessels, and insurers have cancelled coverage for the waterway. • Infrastructure Damage: Strikes have targeted Gulf energy facilities; notably, Saudi Arabia shuttered its largest domestic refinery following a drone attack. • Refined Products: U.S. diesel futures hit a two-year high (US$ 2.99), while European gasoil jumped 2.7% after an 18% surge on Monday. • Economic Outlook: Analysts have revised 2026 Brent assumptions to US$ 80/bbl, with "extreme case" projections reaching US$ 120–US$ 150/bbl. _Context for Sri Lanka_: Continued volatility in global oil and refined product prices typically exerts upward pressure on domestic fuel costs and electricity generation expenses, impacting the broader transportation and manufacturing sectors.
📈 Secondary Bond Yields Rally on Bullish Auction & Low Inflation
The Sri Lankan secondary bond market saw a decisive shift last week as yields across the curve compressed, driven by record-high liquidity and cooler-than-expected inflation data. • Market Sentiment & Liquidity Market direction turned bullish mid-week following successful primary auctions. System liquidity hit a 22-year high, reaching a surplus of Rs. 358.76 Bn by week-end, up from Rs. 280.75 Bn previously. • Primary Auction Highlights • Treasury Bills: Yields declined for the 6th consecutive week; 91-day at 7.63%, 182-day at 7.92%, and 364-day at 8.24%. • Treasury Bonds: The PDMO raised the full Rs. 140 Bn offered. The 2030 maturity saw a weighted average yield of 9.50%, while the 2034 maturity settled at 10.70%. • Secondary Market Yield Movements • Short Tenors: 2026 maturities traded between 8.10%–8.00%; Jan 2027 eased to 8.20%. • Medium Tenors: 2028 bonds moved between 8.98%–9.19%; 2029 maturities averaged 9.40%. • Long Tenors: 2034 yields dropped from 10.80% to 10.62%; 2035 yields touched 10.70%. • Macro Indicators • Inflation: Feb CCPI slowed to +1.60% YoY (vs +2.3% in Jan), significantly below the Central Bank’s 5% target and market forecasts. • Currency: The USD/LKR spot rate appreciated slightly, closing at Rs. 309.29/309.32. • Foreign Holdings: Remained static at Rs. 163.41 Bn after four weeks of inflows. _Data based on Wealth Trust Securities and CBSL provisional reports._
📈 Middle East Crisis: Opposition Convenes as Global Energy Costs Spike
Opposition Leader Sajith Premadasa has called an emergency meeting today to address the escalating Middle East conflict and its immediate implications for Sri Lanka. • Labor & Safety: The session focuses on the security of the Sri Lankan workforce in the region and formulating formal advisory steps for the Government. • Energy Markets: Global crude oil prices surged following regional attacks, with Brent crude rising up to 13% in Asian trade before stabilizing at US$ 76.48 per barrel (+5%). • Financial Impact: Significant volatility in global equity markets, with the Nikkei 225 down 1.5% and Hang Seng dropping 2%. US stock futures (S&P 500 and Nasdaq) fell approximately 0.7%, signaling further pressure on local investor sentiment. • Economic Risks: High risk of "knock-on effects" for Sri Lanka’s domestic economy, particularly regarding the energy import bill and potential disruptions to inward remittances.
📈 Dr. Senthilverl Acquires 10% Stake in Renuka Agri Foods for Rs. 1 Bn
High-net-worth investor Dr. T. Senthilverl has significantly increased his footprint in the agri-export sector by acquiring a near 10% stake in Renuka Agri Foods PLC. The transaction, valued at approximately Rs. 1 billion, underscores continued investor confidence in Sri Lanka’s food processing and agriculture industries. • Transaction Details: A total of 82.36 million shares were traded via 824 transactions, generating a turnover of Rs. 1.14 billion—the highest for the market session. • Price Movement: The share price of Renuka Agri Foods closed at Rs. 15.00, reflecting a modest gain of Rs. 0.20. • Ownership Shift: Major shareholder Renuka Foods PLC currently holds a 67.89% stake, a reduction from the 75% holding reported in September of the previous year. • Economic Context: This move highlights the ongoing consolidation within the apparel & textiles and agri-business sectors, where high-net-worth individuals are capitalizing on strategic equity positions in export-oriented firms. _Data based on market reports from March 3, 2026._
📈 US-Iran Conflict Triggers Global Market Volatility & Oil Price Surge
The escalation of conflict between the US, Israel, and Iran on March 1, 2026, has immediately impacted global energy and financial markets, with significant implications for oil-dependent economies like Sri Lanka. • Energy & Oil Markets • Brent crude is currently trading near $73/bbl, up 20% YTD. • Analysts warn of a spike to $80/bbl in the short term, with potential to hit $100/bbl if a prolonged conflict disrupts the Strait of Hormuz (carrying 20% of global supply). • A sustained $100/bbl price could add 0.6-0.7 percentage points to global inflation. • Currency & Safe Havens • The US Dollar is expected to strengthen against most currencies due to its status as a net energy exporter, potentially increasing pressure on emerging market forex reserves. • Gold has risen 22% in 2026, reaching record highs as investors seek safe havens. • The Swiss Franc and Japanese Yen remain primary hedges against geopolitical instability. • Sector Impacts • Airlines: Significant pressure expected due to regional airspace closures and flight cancellations. • Logistics & Shipping: Major trading houses have already suspended fuel shipments through the Persian Gulf. • Technology: High volatility expected, following an existing 15% rise in US bond volatility this year. • Regional Markets • Gulf equities (Saudi Arabia, Dubai) are projected to drop between 3-5% if hostilities persist, impacting global investment sentiment.
📉 CSE Wraps Up February in Red Despite Healthy Turnover
The Colombo Stock Exchange (CSE) concluded February on a negative note as benchmark indices faced selling pressure, particularly across blue-chip and banking counters. • Market Performance: The ASPI fell by 47 points (0.2%), while the S&P SL20 dropped 74 points (over 1%). For the full month of February, the ASPI and S&P SL20 lost 0.3% and 0.1% respectively. • Liquidity & Turnover: Daily turnover remained strong at Rs. 7.0 Bn, with a monthly average daily turnover of Rs. 5.62 Bn. High Net Worth (HNW) participation was robust, with crossings accounting for 19.4% (Rs. 1.3 Bn) of the day’s total. • Sector Highlights: • Food, Beverage & Tobacco: Led turnover (27% share), boosted by Renuka Agri Foods. The sector index rose 0.75%. • Diversified Financials & Banking: Collectively contributed 42% to turnover. Softlogic Finance (+11%) and LOLC Holdings (+Rs. 6.50) saw gains, while the banking sector faced pressure. • Top Laggards: Heavyweights including Commercial Bank (down 3.17%), John Keells Holdings (JKH), HNB, CTC, and LLUB were key negative contributors. • Investor Sentiment: Foreign investors turned net sellers with an outflow of Rs. 363.8 Mn. While HNW interest centered on Renuka Agri Foods and Softlogic Finance, retail activity focused on Browns Investments and Co-Operative Insurance. Based on provisional daily market data.
CSE Turnover Surges Past Rs. 7 Bn as Indices Retreat 📈
The Colombo Stock Exchange experienced a sharp decline on Friday (27), despite a massive spike in trading activity that saw turnover cross a significant milestone. • Market Indices: The All Share Price Index (ASPI) dropped by 47.17 points to 23,734.06, while the S&P SL20 (large-cap index) fell 74.20 points to 6,635.97, indicating pressure on blue-chip stocks. • Turnover & Volume: Market turnover reached a robust Rs. 7.01 Billion. A major driver of this liquidity was Renuka Agri Foods PLC, which alone contributed Rs. 1.14 billion in on-board trades, highlighting activity in the food & beverage sector. • Investor Participation: Domestic: Local buying reached Rs. 6.84 Bn, while selling stood at Rs. 6.48 Bn, showing high internal liquidity. Foreign: Recorded a net outflow, with purchases of Rs. 164 Mn against sales of Rs. 528 Mn. • Summary: Despite the high turnover, the session reflected broad-based weakness as indices closed in the red, largely influenced by net foreign selling and a decline in large-cap counters.
📈 Rs. 140 Bn Bond Auction Sees Yields Fall Amid Record Liquidity
Sri Lanka’s secondary bond market rallied strongly following a highly successful auction by the Public Debt Management Office, which raised the full Rs. 140 billion offered across three maturities. The auction reflected a "bullish" trend driven by a 22-year high in market liquidity. • Auction Outcomes & Yields • 2030 Maturity: Issued at a weighted average yield of 9.50% (fully subscribed). • 2034 Maturity: Issued at a weighted average yield of 10.70% (fully subscribed). • 2037 Maturity: Issued at a weighted average yield of 10.88% (fully subscribed). • Demand: Strong investor appetite with a bid-to-acceptance ratio of 2.79 times. • Market Liquidity & Rates • Net liquidity surplus hit a massive Rs. 341.02 Bn, surpassing the previous day's 22-year record. • Overnight call money and repo rates remained stable at 7.69% and 7.71% respectively. • Aggressive buying in the secondary market pushed rates lower across multiple tenors, including the 2027, 2029, and 2032 maturities. • Currency & Trade Volume • USD/LKR: The Rupee remained steady, closing at Rs. 309.29/309.32 against the US Dollar. • Forex Volume: Total USD/LKR traded volume stood at US$ 123.65 Mn. • Secondary Market: Total transacted volume for bonds/bills reached Rs. 26.43 Bn. Context: Falling yields and high liquidity suggest a favorable environment for government borrowing and potential easing in the broader financial services sector.
CSE Closes in Green as Blue-Chips Drive Momentum 📈
The Colombo Stock Exchange (CSE) ended on a positive note yesterday, as strong buying interest in heavyweights outweighed selling pressure in the banking sector. • Market Performance: The All Share Price Index (ASPI) gained 0.33% (+78.13 points) to close at 23,781.23. The S&P SL20 rose 0.37% (+24.90 points) to end at 6,710.17. • Trading Activity: Daily turnover surpassed Rs. 4.9 Bn with 195.9 million shares traded. The Capital Goods sector was the primary driver, accounting for 27% of total activity, followed by Banking and Diversified Financials at 25%. • Key Contributors: The upward trend was supported by gains in John Keells Holdings (JKH), Hayleys (HAYL), Melstacorp (MELS), Access Engineering (AEL), and Lanka Milk Foods (LMF). • Sector Highlights & Investor Sentiment: Banking Sector: Faced notable selling pressure as investors reassessed valuations following Q4 earnings releases. Investor Participation: Activity remained steady among retail and High Net Worth (HNW) investors. Foreign Interest: Foreign investors turned net buyers with a net inflow of Rs. 194 Mn.
📈 CSE Gains Momentum: Turnover Hits Rs. 4.91 Billion
The Colombo Stock Exchange (CSE) saw a significant uptick in trading activity on Thursday, with turnover nearing the Rs. 5 billion mark amid improved investor participation. • Market Indices: The All Share Price Index (ASPI) rose by 78.13 points (0.33%) to close at 23,781.23. The S&P SL20 Index, tracking blue-chip performance, increased by 24.90 points to end at 6,710.17, signaling broad-based positive momentum. • Turnover & Volume: Total market turnover reached Rs. 4.91 Bn, reflecting a sharp rise in liquidity compared to recent sessions. • Investor Sentiment: • Domestic Participation: Domestic purchases totaled Rs. 4.66 Bn against sales of Rs. 4.85 Bn. • Foreign Interest: Foreign investors remained net buyers, recording purchases of Rs. 249 Mn against sales of Rs. 55 Mn, resulting in a Net Foreign Inflow for the day. The session highlights a shift toward active engagement in the Equity Market, driven by a mix of retail and institutional interest as the indices continue their upward trajectory.
Sri Lanka Overnight Liquidity Hits 22-Year High 📈
• Money Market: Net liquidity surplus crossed the Rs. 300 Bn mark to reach Rs. 322.93 Bn, the highest level in 22 years. The Central Bank drained Rs. 100 Bn via Repo auctions to manage the excess. • T-Bill Auction: Yields declined for the sixth consecutive week across all maturities. 91-day: 7.63% (-3 bps) 182-day: 7.92% (-7 bps) 364-day: 8.24% (-3 bps) The auction was undersubscribed, raising Rs. 67.88 Bn (75.4% of the Rs. 90 Bn offered). • Bond Market: Secondary market yields consolidated with renewed buying interest. A major Treasury Bond auction of Rs. 140 Bn is scheduled for today (Feb 26) across 2030, 2034, and 2037 maturities. • Forex & Rates: The USD/LKR spot exchange rate closed slightly stronger at 309.33/309.36. Call money and Repo rates averaged 7.69% and 7.71% respectively.
📈 CSE Ends Volatile Session in Green Following Late Rally
The Colombo stock market recovered from a midday dip to close slightly higher yesterday, driven by selective buying interest despite negative overall market breadth. • Market Performance • ASPI: 23,703.10 (+0.05% | +12.48 points) • S&P SL20: 6,685.27 (+0.06% | +4.15 points) • Turnover: Over Rs. 4.0 Bn • Share Volume: 133.1 Mn shares traded • Sector & Stock Highlights • Diversified Financials led turnover (22%), followed by Capital Goods and Banking (combined 35%). • Key gainers included CDB, DIAL, PLR, JKH, and DOCK. • 101 stocks advanced while 127 declined, indicating concentrated gains in specific counters. • Crossings accounted for 16.8% of turnover, led by AEL.N (Rs. 230.2 Mn). • Investor Sentiment • Retail investors were the primary drivers of the session; high-net-worth (HNW) activity remained modest. • Foreign investors were net sellers with an outflow of Rs. 72 Mn. • Year-to-date (YTD) foreign outflow stands at Rs. 15.9 Bn. • Market P/E ratio: 11.17. _Note: Based on provisional market data._
📈 Market Turnover Tops Rs. 4 Bn as Indices Edge Up
Sri Lanka’s equity market recorded a modest gain on Wednesday (Feb 25), supported by steady domestic participation at the Colombo Stock Exchange. • Market Performance The All Share Price Index (ASPI) rose by 12.48 points (+0.05%) to close at 23,703.10. The blue-chip S&P SL20 Index gained 4.15 points (+0.06%) to end at 6,685.27. • Turnover & Participation Total market turnover reached Rs. 4.02 Bn. Trading was heavily dominated by domestic investors, with local purchases and sales totaling Rs. 3.97 Bn and Rs. 3.90 Bn respectively. • Foreign Investor Activity Foreign participation remained subdued, resulting in a net foreign outflow for the session. Foreign Purchases: Rs. 48 Mn Foreign Sales: Rs. 114 Mn _Note: Market turnover was significantly influenced by the banking and diversified financials sectors._
📈 Asia Markets Rally on AI Surge & Global Policy Watch
Regional financial markets climbed on Wednesday as investor confidence in Artificial Intelligence (AI) remains a primary growth driver, while attention shifts to US policy and Japanese monetary shifts. • Market Performance MSCI Asia-Pacific index rose 1.0%, led by a record high for Japan's Nikkei (57,956.92). South Korea’s KOSPI surged 1.7%, crossing the 6,000 mark for the first time, fueled by a 44% year-to-date gain. • Tech & AI Sector Memory chip manufacturers are the biggest beneficiaries of the AI boom. Samsung Electronics and SK Hynix stocks have doubled since October due to global shortages. Sentiment was further bolstered by Anthropic unveiling new business AI tools, reinforcing the ICT sector’s role in global profit growth. • Currency & Macro Outlook Japan: The Yen strengthened to 155.7/US$ amid uncertainty over Bank of Japan rate hikes, following reports of political reservations regarding further tightening. USA: Markets are awaiting President Trump’s State of the Union speech for clarity on trade and fiscal policy. Federal Reserve rate cuts are anticipated to begin in June 2026. Commodities: Crude oil rose approx. 0.75% (Brent at $71.30), while Gold remained flat at $5,138.49/oz. _Note: Market data based on early Wednesday trading sessions._
📈 Secondary Bond Market Gains Interest Amid Major Auctions
The secondary bond market saw a slight uptick in rates yesterday as investors adopted a "wait-and-see" approach ahead of significant upcoming auctions and inflation data. Despite cautious sentiment, healthy transaction volumes were recorded via block trades. • Market Activity & Yields: Renewed buying interest emerged at elevated yield levels. Notable trades included 2028 maturities at 9.15%–9.19% and 2029 maturities between 9.39%–9.54%. Longer-term 2034/35 bonds traded in the 10.75%–10.85% range. • Upcoming Treasury Auctions: - T-Bills: Rs. 90 Bn on offer today (below maturing volume of Rs. 107.56 Bn). - T-Bonds: Rs. 140 Bn auction scheduled for Thursday across 2030, 2034, and 2037 maturities. • Liquidity & Money Market: The system remains in a strong net liquidity surplus of Rs. 297.94 Bn. The Central Bank drained Rs. 60 Bn via overnight repo at 7.63%. • Currency (USD/LKR): The Rupee remained stable, with spot contracts closing at Rs. 309.35/40. Total market volume stood at US$ 98.10 Mn (as of Feb 23). Investors remain focused on the February 2026 CCPI inflation data release due later this week to gauge future interest rate trajectories.
Colombo Stocks Retreat Amid Conglomerate and Bank Sell-Off 📉
The Colombo stock market closed in the red on Tuesday, primarily weighed down by losses in heavyweights within the diversified holdings and banking sectors. • Overall Indices The benchmark ASPI fell by 0.39% (92.40 points) to end at 23,690.62. The S&P SL20 index, which tracks the 20 most liquid stocks, dropped 0.71% (47.59 points) to settle at 6,681.12. • Market Turnover & Foreign Activity Daily turnover stood at approximately Rs. 3.7 Bn, with over 152.5 million shares changing hands. Foreign investors remained net sellers, recording a net outflow of Rs. 729.3 Mn. • Sector Performance Capital Goods: Led turnover contribution (26%), though the sector index shed 0.91%. Key movements included ACL Cables (+Rs. 1.50) and Access Engineering (+Rs. 1.10), while John Keells Holdings (JKH) fell by Rs. 0.50. Telecommunication Services: Second highest contributor to turnover, with the index edging up 0.02%, despite a slight Rs. 0.10 drop in Dialog Axiata. Banks & Diversified Financials: Significant negative pressure came from Melstacorp, Nations Trust Bank, Sampath Bank, and Central Finance. • Investor Sentiment Retail interest was concentrated in Co-Operative Insurance, Browns Investments, and HVA Foods. High net worth (HNW) and institutional activity was notably observed in Dialog Axiata, ACL Cables, and Commercial Bank.
Global Market Volatility Hits Asian Stocks Amid U.S. Trade Uncertainty 📈
• Market Performance: Asian markets stuttered as the MSCI Asia-Pacific index fell 0.2%, reversing a six-day rally. This follows a 1.0% drop in the S&P 500 and a 1.1% decline in the Nasdaq, driven by AI trade concerns and a bearish global economy report. • U.S. Policy Impact: Markets are reacting to President Trump's threat of higher duties under Section 122 of the Trade Act, targeting countries backing away from negotiated trade deals. This protectionist stance follows the Supreme Court striking down emergency tariffs, heightening global trade uncertainty. • Key Indicators: • Japanese Markets: The Nikkei 225 bucked the trend, advancing 0.7% upon returning from a holiday. • Currencies & Commodities: The USD strengthened slightly to 154.77 yen. Gold rose 0.3% to US$ 5,244.96 as a safe-haven asset, while WTI crude edged down to US$ 66.23 amid U.S.-Iran tensions. • Volatility: The VIX rose to 21.01, reflecting increased investor jitters. • Monetary Outlook: Fed funds futures signal a 95.5% probability that the U.S. central bank will hold interest rates steady at the March 18 meeting. Based on provisional data.
Gold Prices Retreat as US Dollar Strengthens 📈
Global gold prices eased from a three-week high on Tuesday as a firmer US dollar offset safe-haven demand stemming from US-Iran tensions and tariff uncertainties. • Overall Market Figures: • Spot Gold: Fell 1.5% to US$ 5,150.38 per ounce. • US Gold Futures: Dropped 1.1% to US$ 5,170.70. • Spot Silver: Slid 3.1% to US$ 85.50 per ounce. • Platinum & Palladium: Decreased by 2.9% and 2.1% respectively. • Local Context (Sri Lanka): Based on Colombo's Sea Street market data, local gold prices remain highly sensitive to these global fluctuations. Following a recent volatility streak, 24-carat gold was recently recorded at approximately Rs. 451,500 per sovereign, while 22-carat gold stood near Rs. 413,900. • Economic Drivers: • Currency Impact: A stronger US dollar makes bullion more expensive for holders of other currencies, including the Sri Lankan Rupee. • Monetary Policy: Markets are monitoring potential US Federal Reserve rate pauses, which influence the opportunity cost of holding non-yielding assets like gold. • Geopolitical Risk: Tensions in Beirut and US-Iran relations provide a floor for prices despite the dollar's strength. Provisional data based on early morning trading sessions.
### Secondary Bond Market Edges Up Amid Dull Trading 📈
The secondary bond market started the week with rising rates and subdued activity, as investors adopted a "wait-and-see" approach ahead of upcoming auctions and February inflation data. • Secondary Bond Market Profit-taking selling pressure continued to push rates higher across key maturities. 15.02.28 maturity: Traded at 9.00%. 15.10.28 maturity: Traded between 9.15% - 9.19%. 15.10.29 maturity: Traded at 9.50%. 15.06.35 maturity: Traded at 10.84%. • Liquidity & Money Market Market liquidity remained high with a net surplus of Rs. 288.48 Bn. The Central Bank drained Rs. 50 Bn via overnight Repo at a 7.62% weighted average. Weighted average rates for overnight call money and Repo stood at 7.68% and 7.70%, respectively. • Forex Market The USD/LKR spot exchange rate remained largely stable, closing at Rs. 309.36/309.38 compared to the previous close of Rs. 309.35/309.40. Total traded volume (as of Feb 20) was recorded at US$ 68.30 Mn.
📈 CSE Opens Week with Marginal Gains Amid Volatility
The Colombo stock market began the week in positive territory, though it failed to sustain an early 109-point rally. The banking sector remained the primary driver of activity in a session characterized by retail-led participation and selective trading. • Overall Market Performance The All Share Price Index (ASPI) closed marginally up by 0.04% (+9.38 points) at 23,783.02. The blue-chip S&P SL20 index rose by 0.11% (+7.24 points) to end at 6,728.71. • Turnover and Trading Volume Daily turnover reached Rs. 2.56 Bn, slightly below recent averages, with over 97 million shares exchanged. High-net-worth (HNW) activity remained limited. • Sector & Stock Highlights The banking sector contributed 17% to the total turnover, followed by capital goods and materials, which jointly accounted for 29%. Key positive contributors included Melstacorp (MELS), Richard Pieris (RICH), Prime Lands Residencies (PLR), Commercial Bank (COMB), and Hatton National Bank (HNB). • Foreign Investor Activity Foreigners remained net sellers, recording a net outflow of Rs. 52.8 million for the day.
📉 CSE Weekly Wrap: Market Ends in Red Amid Banking Sell-off
The Colombo stock market closed the week on a downward note, primarily weighed down by the banking and blue-chip sectors. Despite a mid-day recovery attempt, negative sentiment prevailed due to sector earnings and global tensions. • Market Indices: The ASPI dropped 0.40% (96.43 points) to close at 23,773.64. The S&P SL20 declined 0.32% (21.72 points) to 6,721.47. _Note: Despite the daily drop, the ASPI and S&P SL20 ended the full week up 0.27% and 1.55% respectively._ • Trading Activity: Daily turnover reached approximately Rs. 3.9 Bn with over 139 million shares traded. Foreign investors recorded a net outflow of Rs. 11.3 Mn. • Sector Performance: The banking sector dominated activity, accounting for 23% of daily turnover. Insurance and capital goods followed, collectively contributing 35%. • Key Contributors: Major negative drags on the index included Commercial Bank (COMB), Ceylon Hotels (CTHR), Melstacorp (MELS), Bukit Darah (BUKI), and John Keells Holdings (JKH). • Market Sentiment: Participation from High-Net-Worth (HNW) and retail investors remained subdued as the market reacted to the latest financial results and macroeconomic shifts.
CSE Slips for Second Day with Broad-Based Decline 📉
The Colombo Stock Exchange (CSE) closed in the red for the second consecutive session today (Feb 20), as both key indices faced a broad-based decline amidst moderate trading activity. • Market Performance: - The All Share Price Index (ASPI) fell by 96.43 points, closing at 23,773.64. - The S&P SL20 Index, representing blue-chip stocks, dropped 21.72 points to end at 6,721.47. • Liquidity & Turnover: - Total market turnover amounted to Rs. 3.89 billion. The downward trend reflects a cautious sentiment in the banking and finance and diversified financials sectors, which often drive daily volatility. Based on provisional end-of-day data.
Global Markets Under Pressure as Middle East Tensions and Private Equity Concerns Rise 📈
• Global Market Sentiment: Markets across Asia and the U.S. dipped on Friday as geopolitical risks escalated. Japan’s Nikkei dropped 1% while Hong Kong's Hang Seng fell 0.3%. U.S. private equity stocks (Apollo, Blackstone) saw sharp declines of over 5% due to liquidity and valuation concerns. • Energy & Commodities: Brent crude futures reached a 6.5-month high, surpassing US$ 72 per barrel. This spike follows a U.S. military buildup and a 10-15 day deadline set by the U.S. for Iran to reach a nuclear deal, signaling potential supply disruptions. • Currency & Rates: • The U.S. Dollar is on track for its largest weekly gain in four months (+0.9% against the Euro). • The Japanese Yen weakened as core inflation slowed to 2.0%, potentially delaying interest rate hikes. • U.S. 10-year Treasury yields remained steady at 4.06% amid uncertainty over the Fed's rate-cut trajectory. • Corporate & Trade: • ICT/BPM and tech focus remains on Nvidia’s upcoming earnings and a reported US$ 30 Bn investment into OpenAI. • The U.S. trade deficit widened in December, with the 2025 goods shortfall hitting record highs despite tariff policies. • Consumer outlook remains cautious as retail giant Walmart shares fell 1.4% following soft guidance. _Summary based on provisional market data as of Feb 20, 2026._
Secondary Bond Yields Edge Higher Amid Profit Taking 📈
The secondary bond market experienced a rise in yields yesterday, driven by continued profit-taking, although transaction volumes remained healthy due to several block trades. • Bond Market Yields Short-term: 2028 maturities (15.03.28 & 01.05.28) traded between 8.99% and 9.05%. Medium-term: 2030 maturities (01.03.30 & 01.07.30) reached 9.54%–9.55%. Long-term: 2032 yields rose notably to 10.25%, while 2037 maturities traded up to 10.90%. • Money Market & Liquidity The market recorded a net liquidity surplus of Rs. 283.22 Bn. Central Bank's Domestic Operations Department (DOD) drained Rs. 30 Bn via overnight repo auction at a weighted average rate of 7.63%. Overnight call money and repo rates stood at 7.67% and 7.68% respectively. • Forex Market The USD/LKR spot exchange rate closed slightly stronger at Rs. 309.30/35 compared to the previous close of Rs. 309.35/40. Total traded volume for 18 February 2026 was US$ 91.75 Mn.
CSE Dips Despite End of 22-Day Foreign Outflow Streak 📈
The Colombo stock market lost early momentum to end in the red yesterday, despite a significant shift in foreign investor sentiment. • Market Performance: • The ASPI fell by 0.21% (49.77 points) to close at 23,870.07. • The S&P SL20 decreased by 0.11% (7.31 points) to 6,743.19. • Intraday, the ASPI briefly crossed the 24,000-point milestone before retreating. • Investment & Turnover: • Total market turnover reached Rs. 4.9 Bn with 277 Mn shares traded. • Foreign Investors recorded a net inflow of Rs. 37 Mn, snapping a 22-day streak of net outflows. • High-net-worth participation remained subdued, while retail activity was high. • Sector & Stock Highlights: • Capital Goods led turnover (21%), with John Keells Holdings (up Rs. 0.20) and Hayleys (up Rs. 1.25) as key drivers. • Diversified Financials and Telecommunications (Dialog Axiata) contributed a combined 23% to turnover. • Leading laggards included SAMP, DOCK, DIAL, DFCC, and COMB. • National Impact: • The shift to net foreign buying provides a positive signal for macroeconomic stability, potentially easing pressure on the capital account if the trend sustains.
Rs. 60 Bn T-Bill Auction Fully Subscribed: Rates Drop for 5th Week 📉
• Overall Performance: The weekly Treasury Bill auction was fully subscribed, successfully raising the entire Rs. 60 billion offered. Demand remained high, with total bids reaching 2.87 times the offered amount. • Yield Adjustments: Weighted average rates declined across all maturities for the fifth consecutive week: • 91-day Bill: 7.66% (down 6 bps) • 182-day Bill: 7.99% (down 8 bps) • 364-day Bill: 8.27% (down 4 bps) • Market Context: While primary yields dropped, Secondary Bond yields edged up slightly due to profit-taking pressure. The money market showed a high net liquidity surplus of Rs. 282.43 billion, reflecting strong stability in the financial sector. • Currency & Liquidity: The USD/LKR spot exchange rate closed marginally stronger at 309.35/309.40. The Central Bank continued managing excess liquidity, draining Rs. 25 billion via overnight repo auctions to maintain monetary stability.
Blue-Chip Rally Pushes S&P SL20 to Historic High 📈
The Colombo Stock Exchange (CSE) closed on a positive note this Wednesday (Feb 18), with the blue-chip index reaching an all-time record. • Market Performance: The S&P SL20 index surged 41.79 points to close at 6,750.50, marking the first time the index has crossed the 6,750 threshold. The All Share Price Index (ASPI) also gained 37.02 points, ending at 23,919.84. • Turnover & Activity: Total market turnover reached Rs. 5.66 billion, reflecting robust trading activity in the capital markets. • Investor Participation: Domestic participation dominated the session, with local purchases at Rs. 5.55 billion against sales of Rs. 5.37 billion. Foreign activity remained more reserved, with purchases of Rs. 109 million and sales of Rs. 292 million, leading to a net foreign outflow for the day.
CSE Ends Volatile Session in Red 📉
The Colombo stock market closed slightly lower on Tuesday after early gains were erased by profit-taking. Despite a midday recovery attempt, both key indices remained in the red, driven by selling pressure in banking counters. • Overall Performance • ASPI: 23,882.82 points (-0.07% or 17.29 points) • S&P SL20: 6,708.71 points (-0.02% or 1.62 points) • Market Turnover: Rs. 4.2 Bn (37.7% below monthly average) • Foreign Outflow: Net outflow of Rs. 42.3 Mn • Sector Breakdowns & Turnover Leaders • Capital Goods: Led daily turnover with a 22% share. • Banking, Food, Beverage & Tobacco: Collectively contributed 30% to total turnover. • Top Volume: Softlogic Capital PLC (Rs. 274 Mn), Prime Lands Residencies PLC (Rs. 245 Mn), and Lanka Milk Foods (Rs. 240 Mn). • Market Dynamics • Market breadth was negative with 124 decliners vs 105 advancers. • Profit-taking was specifically noted in banking stocks following a previous rally. • High-net-worth (HNW) participation remained subdued, while retail activity stayed at average levels. Based on provisional trading data.
Secondary Bond Market Yields Consolidate; Activity Moderates 📈
The secondary bond market saw rates hold steady along the yield curve yesterday, though profit-taking led to marginal yield increases in selected tenors. Trading activity was healthy initially but moderated toward the close. • Overall Debt Market Figures • Total Secondary Market Volume (Feb 13): Rs. 25.81 Bn. • Net Liquidity Surplus: Elevated at Rs. 270.99 Bn. • Central Bank Operations: CBSL drained Rs. 20 Bn via overnight repo auction at a weighted average of 7.65%. • Sector Yield Breakdown • 2028 Maturities: Traded between 9.03% – 9.10%. • 2029 Maturities: Yields edged up to 9.43% – 9.45%. • 2030 Maturities: Ranges shifted to 9.49% – 9.55%. • 2032/2033 Maturities: Yields rose, with 2033 bonds reaching 10.37% – 10.40%. • Treasury Bills: Feb 2027 maturities saw notable demand, collected at 8.23% – 8.25%. • Money & Forex Markets • USD/LKR: Spot contracts closed stable at Rs. 309.20/309.25. • Traded Forex Volume (Feb 13): US$ 68.85 Mn. • Overnight Rates: Call money at 7.67% and Repo at 7.68%. _Note: Based on data provided by Wealth Trust Securities and CBSL._
### CSE Opens Week Strong: Indices Near 24,000 Milestone 📈
The Colombo Bourse started the week on a bullish note yesterday, with the benchmark index nearing a historic 24,000 level driven by heavy buying in the financial sector. • Overall Market Performance ASPI: Gained 0.80% (+190.27 points) to close at 23,900.11. S&P SL20: Rose by 1.38% (+91.60 points) to end at 6,710.33. Turnover: Recorded at Rs. 5.6 Bn, with 243.8 million shares traded. Market P/E: Stood at 11.26x. • Sector & Stock Highlights Banking Sector: The primary driver of growth, accounting for 33% of daily turnover. Top contributors included HNB, SAMP, COMB, and NDB. Capital Goods & Diversified Financials: Collectively contributed 32% to the day's turnover. Apparel & Textiles/Consumer: Market activity remains focused on large-cap stability ahead of upcoming earnings and dividend announcements. • Investor Sentiment & Capital Flows Foreign Interest: Recorded a net outflow of Rs. 167.6 Mn. Top foreign buying was seen in LMF.N (Rs. 49.7 Mn), while DIAL.N saw the highest net selling (Rs. 131.8 Mn). Market Breadth: Despite the index rise, breadth was negative with 135 decliners vs. 96 gainers, indicating gains were concentrated in select large-caps. Strategic Trades: Crossings (large block trades) represented 11.3% of turnover, led by SEYB.X and DIAL.N.
📈 CSE Update: 2026 Market Outlook & Performance Milestones
The Colombo Stock Exchange (CSE) shows a robust positive trajectory, entering 2026 with record-breaking indices and a 5-year CAGR of 24.32% for equity investments. • Market Performance & Growth The ASPI rose from 6,129.21 (2020) to 22,624.31 (end-2025), a 269% increase. 2025 ASPI Year-To-Date (YTD) return reached 41.89%. January 2026 saw record market capitalization surpassing LKR 8.46 Bn. • Sector & Instrument Highlights 25 new listings in 2025, including a "national first" Orange Bond for gender equity. Expansion of GSS+ debt instruments: Blue, Green, Sharia, and High Yield Social Sustainability Bonds. Infrastructure Bonds and proposed Municipal Bonds are being positioned to fund post-cyclone reconstruction for SMEs and local authorities. • Foreign Investment & Economic Indicators Cumulative net foreign inflow of Rs. 77.83 Bn (2022-2024), with recent outflows attributed to profit-taking. Strong fiscal discipline noted with a 2025 primary balance surplus of nearly 5% of GDP. Investor forums recently concluded in Dubai and Riyadh to attract further global capital. • Strategic Outlook The market remains fundamentally strong, supported by institutional reforms and a transition from high-interest regimes to equity-driven returns. The Diri Savi Board remains a critical capital-raising tool for SMEs recovering from recent physical shocks.
📈 Foreign Holdings of Rupee Treasuries Hit 30-Month High
Foreign investment in Sri Lanka’s government securities rose for the third consecutive week, with a net inflow of Rs. 9.21 Bn pushing total holdings above the Rs. 160 Bn mark (specifically Rs. 163.23 Bn). This reflects a 6% WoW increase, marking the highest level since August 2023. • Liquidity & Money Market: Inter-bank liquidity surplus hit a 11-year high of Rs. 299.68 Bn. This excess cash drove weighted average Call Money and Repo rates down to 7.66% and 7.70% respectively. • Primary Auctions: Treasury Bill yields fell for the 4th straight week. The 91-day rate dropped to 7.72% (-8 bps), while the 182-day fell to 8.07% (-10 bps). A separate Treasury Bond auction raised the full Rs. 51 Bn offered, with the new 2036 maturity drawing strong interest at 10.73%. • Secondary Market: Markets remained bullish as yields trended lower across the curve. The "belly-to-long" end (2029–2037 maturities) saw the most significant declines due to high investor demand and surplus liquidity. • Currency Movement: The USD/LKR spot exchange rate closed the week slightly stronger at Rs. 309.20/25, compared to the previous week’s close of Rs. 309.37/42, on average daily volumes of US$ 119.15 Mn.
📈 CSE Ends Volatile Week on the Up
The Colombo Stock Exchange (CSE) closed the week on a positive note, with both major indices recording modest gains during the final session. • Market Performance The ASPI rose by 0.24% (+57.33 points) to end at 23,709.84, while the S&P SL20 gained 0.29% (+19.21 points) to close at 6,618.73. For the overall week, the ASPI declined 0.39%, while the S&P SL20 edged up 0.06%. • Turnover & Trading Daily turnover reached Rs. 8.5 Bn, supported by robust high-net-worth participation and significant block trades. Crossings accounted for 36% (Rs. 3.14 Bn) of the total value. • Sector Highlights The materials sector dominated activity, contributing 37% (Rs. 3.10 Bn) of daily turnover. The banking and capital goods sectors followed, collectively providing 28% of the day's value. • Key Stock Movements Tokyo Cement (TKYO.N) was the top turnover contributor (Rs. 2.05 Bn), followed by Teejay Lanka (TJL) and Sampath Bank (SAMP). Leading index gains were driven by Hatton National Bank (HNB), Richard Pieris (RICH), and Dilmah Ceylon Tea (CTEA). • Foreign Interest Foreign investors remained net sellers with a net outflow of Rs. 986.2 Mn for the day. However, the weekly net outflow of Rs. 2.9 Bn showed improvement compared to the Rs. 5 Bn outflow recorded the previous week.
📈 Gold Rebounds to $ 4,953 as Global Volatility Continues
Global gold prices advanced 0.64% on Friday, recovering from a near one-week low as investors await US inflation data. Despite recent fluctuations, the metal has surged 71.94% YoY, significantly impacting Sri Lanka's gem and jewellery sector and national reserves. • Global Market Performance • Spot Gold: US$ 4,953.18 per ounce (+0.64%). • Monthly Trend: Prices are up 7.03% over the last 30 days. • Recent Volatility: A 3% drop on Thursday saw prices briefly slip below the US$ 5,000 threshold. • Local Market Impact • Jewellery: High global rates have pressured the domestic jewellery industry, with 24-carat gold priced at approximately Rs. 55,160 per gram (provisional). • Sovereigns: A 24-carat sovereign stands at approx. Rs. 441,280, following a historic year where prices rose over 66%. • Industry Strain: Elevated costs have dampened domestic demand for gold ornaments, though the export of high-value gems remains a key foreign exchange earner. • Economic Outlook • Drivers: Stronger-than-expected US labor data suggests interest rates may remain higher for longer, providing a headwind for non-yielding assets. • Forecasts: Analysts suggest global prices may test the US$ 5,500 mark by late 2026 if geopolitical risks and central bank buying persist. _Note: Local prices are based on market averages and may vary by retailer._
📈 Rs. 51 Bn Bond Auction Yields Bullish Results
The Sri Lankan bond market maintained its strong momentum as the Public Debt Management Office successfully raised the full Rs. 51 billion offered at yesterday's auction. High liquidity and declining money market rates drove yields lower across the board. • Auction Performance: Bids received were 4.86 times the accepted amount, signaling robust investor appetite. • Yield Outcomes: - 2030 Maturity (01.03.30): Issued at a weighted average yield of 9.52%. - 2036 Maturity (15.08.36): This brand-new ISIN was issued at 10.73%, coming in significantly lower than market expectations. • Secondary Market: A strong rally saw yields hit fresh lows. Key trades included the 2027 maturities at 8.40%-8.50% and the 2037 maturity which saw a sharp decline of over 10 basis points. • Market Liquidity: The money market net liquidity surplus remained high at Rs. 296.71 billion, with overnight call money rates averaging 7.64%. • Forex & Volumes: The Rupee remained steady with the USD/LKR spot closing at Rs. 309.30/309.37. Daily trading volume for the USD/LKR stood at $ 121.25 million. The auction success reflects increasing confidence in the financial services and sovereign debt segments as borrowing costs continue to trend downward. _Data based on Wealth Trust Securities and provisional market reports._
📈 CSE Ends Marginally Down Amid Subdued Trading
The Colombo Stock Exchange (CSE) closed slightly in the red today, reflecting a sideways momentum. High-net-worth and retail participation remained limited, with turnover falling 29.8% below the monthly average. • Market Performance: • ASPI: 23,652.51 (↓ 0.01% or 3.17 points) • S&P SL20: 6,599.52 (↓ 0.18% or 12 points) • Turnover: Rs. 4.8 Bn (Volume: 224.2 Mn shares) • Market P/E: 11.20x • Sector Highlights: • Banking: Led activity with a 30% share of daily turnover. • Food, Beverage & Tobacco & Capital Goods: Combined for 31% of turnover. • Diversified Financials: Also featured among the leading sectors in market activity. • Investor Sentiment: • Foreign Interest: Net sellers with a net outflow of Rs. 42.7 Mn. • Top Net Foreign Buy: RAL (Rs. 3.7 Mn). • Top Net Foreign Sell: JKH (Rs. 24.7 Mn). • Crossings: Accounted for 14.1% of turnover, led by COCO.N (Rs. 336 Mn) and COMB.N (Rs. 83.9 Mn). • Key Stock Movers: • Top Negative Contributors: RICH, CFIN, JKH, RIL, and AEL. • Market Breadth: 125 companies declined versus 106 gainers.
📈 Asian Markets Hit All-Time Highs Amid US Policy Shifts
Asian equities surged to record levels this Thursday, buoyed by robust U.S. labor data and a tech-sector rally. While global sentiment is positive, the delay in expected U.S. Federal Reserve rate cuts presents a mixed landscape for emerging economies like Sri Lanka. • Overall Market Performance The MSCI Asia-Pacific index rose 0.65% to a new peak, marking a 13% gain in the first six weeks of 2026. Technology led gains in Japan and South Korea, with Japanese shares further boosted by recent election-driven stimulus promises. • Monetary Policy & US Yields Stronger-than-expected U.S. job growth has slashed the probability of a March rate cut from 20% to just 5%. • U.S. 2-year Treasury yields jumped to 3.512%. • U.S. 10-year Treasury yields stood at 4.186%. • Impact on Sri Lanka & Regional Outlook Higher U.S. yields typically support the US Dollar, which may pressure the Sri Lankan Rupee (LKR 309.35/40) despite its recent stability. For Sri Lanka, delayed Fed easing maintains elevated borrowing costs for foreign debt servicing and could temper the pace of domestic interest rate reductions by the Central Bank of Sri Lanka (CBSL). • Commodities & Energy • Crude Oil: Brent rose 0.4% to US$ 69.68/bbl due to Middle East tensions. Rising energy costs remain a risk to Sri Lanka's agriculture sector and domestic electricity pricing. • Gold: Prices dipped 0.44% to US$ 5,058.49/oz as the dollar firmed.
Sri Lanka Money Market Surplus Hits Rs. 296 Bn 📈
• Liquidity & Rates: Net market liquidity surged to Rs. 296.45 Bn. Significant participation was seen in the Central Bank’s Standing Deposit Facility (SDFR) at 7.25%. Overnight call money and repo rates averaged 7.65% and 7.69% respectively. • Treasury Bill Auction: The Rs. 90 Bn auction was fully subscribed (3.16x oversubscribed). Yields dropped for the 4th consecutive week: • 91-day: 7.72% (-8 bps) • 182-day: 8.07% (-10 bps) • 364-day: 8.31% (-2 bps) • Bond Market Rally: The secondary government securities market saw robust activity and falling yields. Focus shifted to the upcoming Rs. 51 Bn Treasury Bond auction today, featuring 2030 and 2036 maturities. • Forex Market: The Sri Lankan Rupee (LKR) remained stable, with the USD/LKR spot contract closing slightly stronger at Rs. 309.35/40 compared to the previous day’s Rs. 309.43/47.
CSE Ends Losing Streak Amid Market Volatility 📈
The Colombo Bourse closed marginally higher yesterday, recovering from a two-day decline despite a session marked by early volatility and cautious sentiment. • Market Performance Overview The All Share Price Index (ASPI) gained 0.02% (4.59 points) to reach 23,655.68. The S&P SL20 index followed suit, rising 0.09% (6.11 points) to settle at 6,611.52. • Turnover and Trading Volume Daily turnover reached Rs. 3.35 Bn, with approximately 170.9 million shares traded. However, market breadth remained negative as 132 counters declined against 105 gainers. • Foreign and Investor Activity Foreign investors recorded a net outflow of Rs. 64 million. High Net Worth (HNW) and retail participation remained subdued, contributing to the day’s cautious trading tone. • Sector Highlights The capital goods sector dominated turnover with a 20% share. This was supported by the food, beverage & tobacco and diversified financials sectors, which collectively contributed 32% to the day's total. • Key Stock Movers Top Contributors: NHL, CFIN, CARG, John Keells Holdings (JKH), and LLUB. Turnover Leaders: Samson International (Rs. 220 Mn), UB Finance (Rs. 172 Mn), and Sierra Cables (Rs. 149 Mn).
## 📈 CSE Edges Higher Amid Subdued Trading
The Colombo Stock Exchange (CSE) closed with marginal gains today in a relatively sluggish session characterized by dominant domestic participation and a net foreign outflow. • Market Indices All Share Price Index (ASPI): Up 4.59 points (0.02%) to close at 23,655.68. S&P SL20 Index: Up 6.11 points (0.09%) to close at 6,611.52. • Liquidity & Turnover Total Turnover: Rs. 3.35 Bn. Trading activity remained slow compared to recent averages, reflecting cautious investor sentiment. • Investor Participation Domestic Investors: Formed the backbone of the day's activity with Rs. 3.29 Bn in purchases and Rs. 3.22 Bn in sales. Foreign Investors: Participation was notably low. Foreign purchases stood at Rs. 56 Mn against sales of Rs. 120 Mn, resulting in a net foreign outflow of Rs. 64 Mn. • Market Context The marginal uptick in indices despite low volume suggests a holding pattern in the capital markets, with local retail and institutional players driving the limited momentum while foreign interest remains muted.
📈 Secondary Bond Market Maintains Bullish Momentum
Sri Lanka's secondary bond market continued its positive trend on February 10, with yields edging lower across key maturities. Robust trading volumes reflected strong investor interest, particularly in mid-to-long-term tenors. • Market Sentiment & Yields: Demand was highest for 2029–2037 maturities. Notable trades included the 15.03.28 maturity at 8.98% and the 01.07.37 maturity at 10.95%. The short end of the curve remained consolidated, with the 01.08.26 maturity trading at 8.10%. • Treasury Bill Auction: A Rs. 90.00 Bn auction is scheduled for today (Feb 11), featuring: 91-day: Rs. 20 Bn 182-day: Rs. 50 Bn 364-day: Rs. 20 Bn The total offer is slightly below the maturing volume of Rs. 91.50 Bn. In the previous auction, weighted average rates fell for the third consecutive week, with the 91-day bill reaching 7.80% (-4 bps). • Liquidity & Money Market: Net liquidity surplus remains high at Rs. 282.22 Bn. Overnight call money and repo rates averaged 7.68% and 7.72%, respectively. Secondary market transacted volume stood at Rs. 26.87 Bn (as of Feb 9). • Forex Performance: The LKR remained stable against the US$, with spot contracts closing at Rs. 309.40/45. Daily traded volume was recorded at US$ 118.80 Mn.
### CSE Ends in Red as Profit-Taking Halts Early Rally 📈
The Colombo Bourse closed in negative territory for the second consecutive session, failing to sustain an early spike that saw the ASPI briefly cross the 23,800 mark. Selling pressure and profit-taking by investors led to a late-session slide. Market Performance • ASPI: Down 0.43% (-103.17 points) to close at 23,651.09. • S&P SL20: Declined marginally by 0.05% (-3.27 points) to 6,605.41. • Turnover: Totaled Rs. 3.54 Bn on 158.2 Mn shares. • Foreign Activity: Net foreign outflow of Rs. 465.9 Mn. Sector Highlights • Capital Goods: Led market turnover with a 20% share, driven by active trading in ACL Cables. • Materials: Second highest contributor, headlined by Tokyo Cement Company, though the sector index fell 0.20%. • Diversified Financials: Collectively contributed to 26% of the daily turnover alongside the materials sector. Stock Movements • Laggards: Major negative contributors included Senkadagala Finance (SFCL), Cargills (CARG), and Dialog (DIAL). • Gains & Volume: Share prices of 147 companies declined while 67 advanced. Notable interest was seen in apparel & textiles via TJ Lanka and the construction supply chain through Tokyo Cement. Note: Based on provisional data for February 10, 2026.
ASPI Falls Over 100 Points Amid Moderating Turnover 📉
The Colombo Stock Exchange (CSE) closed on a weaker note today as investor enthusiasm cooled, leading to a significant dip in the broader market index. • Market Indices: The All Share Price Index (ASPI) dropped by 103.17 points (-0.43%) to close at 23,651.09. The blue-chip S&P SL20 Index showed more resilience, declining marginally by 3.27 points to settle at 6,605.41. • Liquidity & Turnover: Market turnover moderated to Rs. 3.54 Bn, a notable decrease from recent high-activity sessions, indicating a cautious approach by participants. • Investor Participation: Local Investors: Remained the primary driver of the market, accounting for Rs. 3.51 Bn in purchases and Rs. 3.04 Bn in sales. Foreign Investors: Activity was subdued and leaned toward selling, with a net foreign outflow of Rs. 466 Mn (Purchases: Rs. 34 Mn vs. Sales: Rs. 500 Mn). The overall sentiment reflects a temporary retreat as the market seeks a new support level following recent gains.
📈 Investor Call on Performance-Linked Bonds
The Sri Lankan Government has scheduled an investor call for tomorrow, 11 February 2026, to provide updates on its post-restructuring debt strategy and performance-linked securities. • Bond Overview: The session focuses on five series of Macro-Linked Bonds (MLBs) and Governance-Linked Bonds (GLBs) with maturities between 2030 and 2038. • Debt Reporting: Updates will be based on the Debt Report published on 31 December 2025, detailing progress against agreed fiscal and governance benchmarks. • Macro-Linked Features: Discussions will cover the performance-linked triggers, where interest rates or principal amounts may adjust based on Sri Lanka’s GDP performance and debt sustainability framework. • Governance Benchmarks: Updates on governance-related developments relevant to the GLBs, which incentivize transparency and fiscal accountability through potential coupon step-downs. • Call Schedule (7:00 p.m. IST): Intended to maintain transparency with international bondholders and market participants following the country's complex debt restructuring. Context: These innovative instruments are central to Sri Lanka’s recovery, linking debt servicing costs directly to the nation's economic health and reform progress.
📈 CSE Opens Week in Red Amid Foreign Net Selling
The Colombo stock market started the week on a negative note as investor caution and significant foreign outflows dampened sentiment. Despite a brief intraday gain of 108 points, the benchmark indices succumbed to late-session selling pressure. • Overall Figures • ASPI: 23,754.26 (Down 0.20% | -47.70 points) • S&P SL20: 6,608.68 (Down 0.09% | -6.04 points) • Total Turnover: Rs. 6.3 Bn • Foreign Interest: Net outflow of Rs. 1.4 Bn (Net sellers) • Sector Breakdowns • Food, Beverage & Tobacco: Led daily activity with a 28% share of turnover (Rs. 1.79 Bn). Lanka Milk Foods (LMF.N) was a standout, gaining 9.08% on Rs. 0.85 Bn turnover. • Materials & Capital Goods: Collectively contributed 34% to total market turnover. • Diversified Holdings: Index-heavy JKH was among the top negative contributors to the ASPI. • Market Highlights • Cumulative earnings for 78 companies released so far for the December quarter reached Rs. 49.55 Bn, reflecting a healthy 18.02% YoY growth. • High net worth and retail participation remained strong, though retail investors engaged in profit-taking on penny stocks. • Large-scale "crossings" accounted for 36% (Rs. 2.28 Bn) of the total turnover, with CIC.N recording a major transaction of Rs. 0.87 Bn.
📈 Asia Markets Surge: Record Highs & Tech Rebound Asian equities jumped on Monday as a landslide election win in Japan and a recovery in U.S. chip stocks bolstered investor sentiment across the region.
• Global Market Movements • Japan’s Nikkei surged 4.4% to an all-time high following PM Sanae Takaichi's two-thirds majority win, signaling aggressive fiscal stimulus and tax cuts. • South Korea’s tech index climbed 4.3%, while the broader MSCI Asia-Pacific (ex-Japan) index rose 2.2%. • Chinese blue chips edged up 1.3% ahead of key inflation data; U.S. and European futures also trended higher. • Tech & Commodity Highlights • The semiconductor sector led the rebound, with Nvidia and AMD both jumping over 8% after a period of heavy selling. • U.S. tech giants are projected to spend US$ 650 Bn on AI-related capital expenditure this year. • Silver added 3.9% (US$ 81.03) and Gold rose 0.8% (US$ 5,000/oz), recovering from recent wild fluctuations. • Economic Outlook & Policy • Investors are betting on a U.S. Fed rate cut by June, with upcoming jobs and inflation data expected to influence stimulus paths. • The Japanese Yen weakened to 156.74 per dollar as markets anticipated debt-funded expansionary policies. • Oil prices dipped slightly (Brent at US$ 67.52) amid ongoing U.S.-Iran negotiations and regional tensions. _Note: Based on provisional market data as of February 9, 2026._
Sri Lanka Foreign Debt Holdings Break 2-Year High 📈
• Government Securities & Foreign Inflows: Foreign holdings in rupee-denominated Government securities surged to Rs. 154.02 Bn as of 5 February, the highest level since October 2023. This reflects a Rs. 7.46 Bn net inflow for the week and a massive 291% recovery from the 2024 low of Rs. 39.38 Bn. • Money Market & Liquidity: Inter-bank liquidity reached its highest point in nearly 11 years, hitting a surplus of Rs. 275.19 Bn. Weighted average rates for Call Money and Repo remained stable at 7.70% and 7.75%, respectively, aligning closely with policy rates. • Treasury Bill Auction: Rates declined for the third consecutive week: • 91-day: 7.80% (-4 bps) • 182-day: 8.17% (-9 bps) • 364-day: 8.33% (-3 bps) The auction raised Rs. 132 Bn in total, exceeding the initial Rs. 120 Bn target due to strong demand in the second phase. • Secondary Bond Market: A strong bullish rally saw yields drop across the curve. High liquidity prompted investors to move toward longer tenors (2029–2035). Market attention now shifts to a Rs. 51 Bn mini Bond auction scheduled for 12 February. • Currency (Forex): The USD/LKR spot rate saw a slight depreciation, closing at Rs. 309.37/42 compared to the previous week's Rs. 309.25/35. Average daily traded volume stood at $ 91.53 Mn.
📈 CSE Ends Week with Positive Gains Amid Foreign Selling
The Colombo stock market showed resilience, closing the week on a positive note driven by high net worth (HNW) participation, despite persistent foreign outflows. • Overall Market Performance The ASPI gained 0.14% (+32.97 points) to end at 23,801.96, while the S&P SL20 rose 0.36% (+23.57 points) to 6,626.38. Total daily turnover reached approximately Rs. 9.1 Bn with 311 million shares traded. • Foreign Investor Activity Foreigners remained net sellers for the second consecutive week. • Daily Net Outflow: Rs. 2.3 Bn • YTD Net Foreign Selling: Rs. 23.1 Bn • YTD Net Outflow (Total): Rs. 11.8 Bn • Sector & Stock Highlights • Banking Sector: Led the market with a 33% turnover share. Commercial Bank (COMB) saw a massive crossing of Rs. 2.2 Bn (23.9% of total turnover), closing at Rs. 225. • Capital Goods: Second-highest contributor; Colombo Dockyard rose to Rs. 154.75. • Apparel: Teejay Lanka featured among top turnover contributors, gaining Rs. 1.10 to close at Rs. 38.40. • Top Contributors: ACME, John Keells Holdings (JKH), Sampath Bank (SAMP), and HNB. • HNW & Retail Participation Market activity was heavily supported by HNW investors, with crossings accounting for 41.9% (Rs. 3.8 Bn) of the day's turnover. Retail interest remained active in counters like Luminex and Renuka Agri Foods.
CSE Market Update - 06/02/2026 📈
The Colombo Stock Exchange (CSE) closed on a positive note today, with both major indices gaining as investor sentiment remains robust. Turnover saw a significant surge, exceeding Rs. 11.11 Bn. • Overall Market Performance ASPI: 23,768.99 (+34.49 points | +0.15%) S&P SL20: 6,602.81 (+5.47 points | +0.08%) Market Cap: Rs. 8.48 Tn (Approx. US$ 28.18 Bn) • Equity Turnover & Volume Total Turnover: Rs. 11.11 Bn (up from Rs. 8.24 Bn YoY/Prev) Share Volume: 441.23 Mn shares traded Total Trades: 45,331 • Investor Activity Domestic Purchases: Rs. 6.89 Bn Foreign Purchases: Rs. 4.22 Bn Foreign Sales: Rs. 5.25 Bn Net Foreign Flow: Net outflow of Rs. 1.03 Bn today • Sector & Corporate Highlights Financials: Continued to dominate market activity, representing 60.9% of the S&P SL20 index weight. Banking & Industrials: Significant movements observed in Commercial Bank, HNB, and Hayleys. Dividends: JAT Holdings and Dialog Axiata announced cash dividends; Renuka Foods announced a sub-division of shares. Debt: DFCC Bank debenture issue was reported as oversubscribed. _Data based on provisional daily market statistics._
📈 Bond Yields Decline as Bullish Momentum Persists
The secondary Bond market extended its rally yesterday, driven by strong demand and aggressive buying interest, particularly in medium to long-term maturities. • Market Activity & Yields: Yields continued their downward trend as traders targeted the 2029–2035 tenors to capitalize on the curve's steepness. • Short-to-Medium Tenors: 2027 maturities traded between 8.60%–8.68%, while 2028 bonds fluctuated between 9.00%–9.14%. • Long Tenors: Significant declines were seen in the 2032–2035 range, with the 15.06.35 maturity dropping to a range of 10.91%–10.83%. • Trading Volume: Total secondary market Treasury Bond/Bill transactions reached Rs. 58.63 Bn on February 3. • Currency & Forex: • The Rupee (LKR) remained stable, with spot contracts closing at Rs. 309.45/309.50 against the USD. • Total Forex traded volume stood at US$ 88.60 Mn for the day. The market shift toward longer tenors suggests investors are looking to lock in "carry and roll-down" potential amidst a declining interest rate environment, providing a boost to financial services and government debt pricing.
📈 CSE Edges Up as HNW Activity Hits Rs. 11.1 Bn
The Colombo stock market extended its winning streak for a second session, bolstered by aggressive high-net-worth (HNW) investor participation despite a significant foreign outflow. • Market Performance Overview The All Share Price Index (ASPI) rose by 0.15% (+34.49 points) to close at 23,768.99. The blue-chip S&P SL20 followed with a 0.08% gain, ending at 6,602.81. Market activity was exceptionally high, with turnover reaching Rs. 11.1 Bn. • Investor & Sector Activity HNW investors dominated the floor, contributing over 60% of daily turnover (Rs. 6.7 Bn) through strategic crossings. Conversely, foreign investors recorded a net outflow of Rs. 1.0 Bn. • Capital Goods: Led turnover with a 50% share, driven by John Keells Holdings (JKH), which contributed Rs. 4.2 Bn alone. • Banking: Accounted for a major portion of the remaining turnover, led by Hatton National Bank (HNB) with transactions totaling Rs. 1.5 Bn. • Retail: Remained average, focusing primarily on penny stocks and selected counters like Luminex and UB Finance. • Key Corporate Movers Top positive contributors included JKH (+Rs. 0.30), Sampath Bank, and Dialog. Hemas Holdings also gained Rs. 0.10, while HNB saw a price decline of Rs. 2.50 despite high volume.
📈 Rayynor Silva Increases Stake in HNB with Rs. 1.4 Bn Investment
High net worth investor Rayynor Silva has further solidified his position in the banking and financial services sector by increasing his stake in Hatton National Bank PLC (HNB). • Transaction Details: Silva acquired 3.5 million shares of HNB at Rs. 422.00 per share, totaling an investment of Rs. 1.4 billion. • Ownership Growth: This acquisition represents approximately 0.8% of the bank, raising his total holding in HNB to 1.5% (6 million shares). • Market Activity: HNB recorded a total turnover of Rs. 1.5 billion during the session, with the share price closing at Rs. 422.25 (down by Rs. 2.50). • Strategic Portfolio: This move reinforces Silva's aggressive diversification across the Sri Lankan banking sector, where he holds significant interests: • Sampath Bank: 10% • DFCC Bank: 9.8% • Seylan Bank: 5% • Commercial Bank: 1%
### Record Turnover at CSE as Market Momentum Surges 📈
The Colombo Stock Exchange (CSE) witnessed a historic trading session today, with turnover hitting a record Rs. 11.11 Bn. The market opened with strong bullish momentum, as the ASPI gained over 100 points in early hours before settling at 23,851.52. Key Market Indices & Performance • ASPI: Significant intra-day volatility with strong investor participation. • S&P SL20: Rose 5.47 points to close at 6,602.81. • Market Breadth: 131 companies closed higher, reflecting broad-based gains. Sectoral & Individual Highlights • Capital Goods & Diversified: John Keells Holdings (JKH) dominated the floor with a massive Rs. 4.31 Bn turnover, driven by high-value crossings. • Banking: Hatton National Bank (HNB) and Sampath Bank showed high activity, with HNB contributing Rs. 1.51 Bn to the daily total. • Telecommunications: Dialog Axiata was among the top positive contributors to the index performance. Market Drivers • The surge in turnover was primarily fueled by significant institutional interest and large-scale crossings. • Sustained investor confidence in blue-chip counters continues to support market liquidity and high transaction volumes. _Note: Data based on provisional market closing reports for February 05, 2026._
Sri Lanka Tea Sales Averages Decline in January 2026 📈
The National Sales Average (NSA) for tea eased in January 2026, facing downward pressure across all elevations in US Dollar terms. • Overall NSA Performance: The January NSA stood at Rs. 1,164.54 (US$ 3.76). This reflects a month-on-month (M-o-M) drop of Rs. 37.04 (US$ 0.13) and a year-on-year (YoY) decrease of Rs. 20.89 (US$ 0.24). • Elevation Breakdowns: - High Grown: Averaged Rs. 1,143.12 (US$ 3.69). While it saw a M-o-M decline, it recorded a YoY rupee gain of Rs. 37.46, though the USD value slipped by $ 0.04. - Medium Grown: Recorded the sharpest M-o-M decline of Rs. 61.49 (US$ 0.20), averaging Rs. 987.40 (US$ 3.19). YoY, this sector fell by Rs. 50.65. - Low Grown: Averaged Rs. 1,221.63 (US$ 3.95), down Rs. 36.62 M-o-M and Rs. 33.97 YoY. • Market Outlook: According to Forbes & Walker Research, realized prices remain under pressure. Notably, all elevations recorded negative variances in US Dollar terms compared to January 2025, despite some mixed movements in rupee terms. This data is based on provisional research findings.
### 📈 Senthilverl Holdings Ups Stake in Colombo Dockyard Above 12%
Senthilverl Holdings Ltd. has significantly increased its interest in Colombo Dockyard PLC (CDPLC) following a series of strategic share purchases on 30 January 2026. • Transaction Details: The holding company acquired over 14.1 million shares at prices ranging from Rs. 149.25 to Rs. 155.25. This move raised its total stake to 12.20% of the issued share capital, up from 8.63% (34.1M shares) recorded just a day prior. • Market Impact: Following the disclosure, CDPLC’s share price rose by Rs. 6.25 (4.3%) to close at Rs. 152.00, generating a daily turnover of Rs. 405.2 million. • Strategic Shifts: This local consolidation follows a major foreign entry earlier in January, where India’s Mazagon Dock Shipbuilders Ltd (MDL) acquired a 41.73% stake for approximately Rs. 6.6 Bn (US$ 21.3M). MDL secured 164.9M shares via the unsubscribed portion of a 9:2 Rights Issue. • National Context: The equity infusion by both local and Indian strategic partners is critical for the shipbuilding & marine engineering sector. It aims to stabilize CDPLC’s financial health—previously flagged for going concern issues—and integrate Sri Lanka more deeply into regional maritime supply chains. • Financial Standing: Based on provisional data from end-September 2025, the company reported assets of Rs. 46.21 per share.
📈 SL Money Market Liquidity Hits 5-Year High of Rs. 266 Bn
• Overall Liquidity: Net liquidity surplus surged to Rs. 266.13 Bn on Tuesday, the highest level since January 2021 and a post-2022 crisis record. A massive Rs. 266.33 Bn was deposited at the CBSL Standing Deposit Facility Rate (SDFR) of 7.25%. • Treasury Bill Auction: Yields dropped for the 3rd consecutive week across all maturities. - 91-day: 7.80% (down 4 bps) - 182-day: 8.17% (down 9 bps) - 364-day: 8.33% (down 3 bps) The auction raised Rs. 89.82 Bn (74.85% of the Rs. 120 Bn offered) despite being undersubscribed. • Secondary Bond Market: High liquidity pushed yields lower on the "belly end" of the curve (2029-2033 tenors) as investors sought higher carry returns. Active trading seen in banking & finance related instruments, with the 2028 maturity trading between 9.02% - 9.16% and 2033 maturity at 10.60% - 10.65%. • Forex Market: The LKR showed slight appreciation against the Greenback, with the USD/LKR spot contract closing at Rs. 309.45/309.55 compared to the previous close of Rs. 309.55/309.65. _Note: Based on data from Wealth Trust Securities and CBSL._
📈 Global Market Volatility & Commodity Surge: Sri Lanka Impact
Asian and global markets are experiencing significant turbulence as AI-driven disruption fears hit the software sector, while geopolitical tensions in the Middle East drive a rebound in commodities. • Global Market Wobble Global equities are on "shaky ground" following a sell-off in U.S. and European software and data analytics sectors. This stems from fears that advancements in AI (notably Anthropic’s new agents) could replace traditional software. Asian markets, including Japan’s Nikkei (-1.23%) and Taiwan (-0.68%), also dipped, though the region's focus on hardware manufacturing provided a partial buffer. • Oil & Energy Surge Global oil prices jumped over 1% (Brent at US$ 68.03) following military escalations involving U.S. and Iranian forces in the Strait of Hormuz—a critical waterway for Asian energy imports. This follows a recent Rs. 2 per litre cut in local fuel prices by CPC (Octane 92 at Rs. 292), which may face upward pressure if global trends persist. • Gold & Precious Metals Gold has staged a sharp comeback, reclaiming the US$ 5,000 per ounce level (+1.5%). Locally, this triggered a spike of approximately Rs. 12,000 per sovereign. • 24-Carat Gold: Rs. 380,000 • 22-Carat Gold: Rs. 349,000 • Economic Implications The volatility is exacerbated by the nomination of Kevin Warsh as U.S. Fed Chair, signaling a potential balance sheet shrinkage. While the Colombo Stock Exchange (ASPI) recently saw moderate declines, the local ICT/BPM sector remains a focal point for long-term AI-related structural shifts.
📈 CSE Ends Losing Streak on High Net Worth Interest
The Colombo Bourse recovered yesterday, snapping a three-session decline as activity from high net worth investors (HNWI) pushed indices into the green. • Market Performance: The ASPI rose by 0.22% (52.82 points) to close at 23,734.50, while the S&P SL20 edged up slightly to 6,597.34. • Turnover & Volume: Total market turnover reached Rs. 8.24 Bn with 276.9 million shares traded. Notably, crossings accounted for 49.4% of the day’s total turnover. • Sector Highlights: • The Banking sector dominated turnover (43%), led by Commercial Bank (COMB) which contributed Rs. 3.2 Bn (38.9% of total turnover). • Capital Goods and Diversified Financials collectively contributed 26% to the daily turnover. • Top gainers driving the index included Colombo Dockyard (DOCK), Teejay Lanka (TJL), and Ceylon Tobacco Company (CTC). • Investor Sentiment: Market activity was characterized by strong HNWI participation, though retail interest remained subdued. The session showed limited volatility as early gains moved into a consolidation phase. • Foreign Interest: Foreign investors remained net sellers with a net outflow of Rs. 1.3 Bn for the day. This brings the YTD foreign net outflow to Rs. 8.5 Bn.
Rs. 120 Bn Treasury Bill Auction Amid Declining Yields 📈
• Auction Overview: The Central Bank of Sri Lanka (CBSL) has announced a Rs. 120 Bn Treasury Bill auction for today. The offer includes Rs. 30 Bn (91-day), Rs. 55 Bn (182-day), and Rs. 35 Bn (364-day) maturities. Notably, the total offer is below the estimated maturing volume of Rs. 137.17 Bn. • Yield Trends: Previous auction results show a downward trend for the second consecutive week. • 91-day: 7.84% (down 9 bps) • 182-day: 8.26% (down 10 bps) • 364-day: 8.36% (down 11 bps) • Market Liquidity & Demand: The government securities market remains buoyant with strong investor demand. Last week’s auction was oversubscribed, and current net liquidity surplus stands elevated at Rs. 212.54 Bn. Secondary market activity was healthy, specifically focusing on 2029 maturities and short-term bills. • Currency Movement: The Sri Lankan Rupee (LKR) showed slight depreciation against the US Dollar. Spot contracts closed at Rs. 309.55/309.63, compared to the previous close of Rs. 309.25/309.35. Daily trade volume for USD/LKR was recorded at $ 103.75 Mn. • Interest Rates: Overnight call money and Repo rates remained stable at 7.70% and 7.75% respectively, reflecting consistent conditions in the banking and finance sector.
CSE Opens February on a Down Note 📉
The Colombo Stock Exchange started the month in the red, with benchmark indices retreating despite maintaining healthy market participation levels. • Overall Market Performance • ASPI: Dropped 130.63 points (0.55%) to close at 23,681.68. • S&P SL20: Fell by 43.95 points (0.66%) to settle at 6,597.20. • Turnover: Recorded at Rs. 5.17 Bn (approx. US$ 16.7 Mn), a decrease from the previous session's Rs. 9.19 Bn. • Sector & Stock Highlights • Capital Goods: Emerged as the most active sector, contributing Rs. 2.1 Bn to the daily turnover. • Banking: Commercial Bank (down 1.0%) announced plans to raise Rs. 20 Bn via Basel III-compliant debentures. • Manufacturing & Industrials: Colombo Dockyard saw a sharp decline of 5.97% to Rs. 145.00 following recent stake acquisition news. • Deltas: Major negative contributors included Ceylinco Holdings, Melstacorp, and Commercial Bank. • Investor Sentiment • Foreign investors were net sellers (Rs. 453.1 Mn), while domestic participation remained the primary driver of liquidity. • The downturn follows a strong January where the ASPI gained 5.25%, suggesting a period of short-term profit-taking as the market enters the new month. _Note: Based on provisional market data for February 02, 2026._
📈 Global Gold Outlook: JP Morgan Targets US$ 6,300 by Year-End
JP Morgan has issued a strongly bullish forecast for gold, projecting prices to reach US$ 6,300 per ounce by the end of 2026. This comes despite recent volatility, where bullion fell over 5% on Monday to US$ 4,677.17/oz, retreating from a record high of US$ 5,594.82. • Core Drivers: The rally is powered by a "structural diversification trend," with central banks and private investors shifting from paper assets to real assets. • Institutional Demand: JP Morgan forecasts central bank purchases to reach 800 tons in 2026, maintaining a high floor for the market. • Silver Outlook: While silver fell 6% to US$ 78.90/oz (down from its US$ 121.64 peak), analysts expect a support floor between US$ 75–US$ 80/oz. • National Context: For Sri Lanka, the global surge significantly impacts local jewelry and investment sectors. In late 2025, local 24K gold reached a historic Rs. 410,000 per sovereign, reflecting the 66% YoY global gain in 2025. _Note: Forecasts are based on current market trends and provisional demand data for 2026._
Rupee Treasury Holdings Surge to Two-Year High 📈
• Overall Figures: Foreign holdings in rupee-denominated Government Securities saw a net inflow of Rs. 6.63 Bn, bringing the total to Rs. 146.56 Bn—the highest level since November 2023. • Liquidity & Rates: Market liquidity reached a five-year high of Rs. 233.13 Bn. This surplus pushed inter-bank call money and repo rates down to 7.70% and 7.72% respectively, compared to December highs of over 8%. • Market Performance: The Secondary Bond market saw robust activity with yields trending lower, particularly in the 2029–2037 segment. Treasury Bill auctions were fully subscribed, raising Rs. 137.50 Bn amid strong demand. • Key Indicators: • Inflation: January CCPI recorded at +2.3%, remaining well below the Central Bank’s 5.0% target. • Currency: The Sri Lankan Rupee (LKR) appreciated against the US Dollar, closing the week at Rs. 309.25/35 vs. the previous week’s Rs. 309.76. • Bond Auctions: Successfully raised Rs. 179.06 Bn (87.35% of offer), with weighted averages aligning with or falling below market rates.
📈 JKSB Forecasts ASPI to Hit 28,000 in 2026
John Keells Stock Brokers (JKSB) anticipates the All Share Price Index (ASPI) will reach 28,000 this year, driven by recurring earnings growth and stable macroeconomic reforms. • Market Performance & Valuation: The ASPI stood at 23,812 as of Friday, marking a 115% increase since September 2024. Market coverage indicates trading at 10.8x FY26E earnings, with a forward expectation of 9.2x for FY27E. Increased foreign participation and IPO activity are expected over the next 2-3 years due to attractive valuations. • Macroeconomic Outlook: GDP Growth: Forecasted at 4-5% for 2026. Inflation: Expected to remain muted at 4-5% in the second half of 2026. Fiscal Health: Primary fiscal surplus projected at ~4%; Revenue-to-GDP expected to rise from 15.6% to 16%. Credit & Consumption: Private credit growth is maintaining a rate of Rs. 200 Bn per month. • Key Economic Drivers: Sustained IMF program reforms and fiscal discipline. Growth in digitization and capital market deepening. Normalization of profit margins following the previous hyperinflation crisis.
📈 DFCC Bank to Raise Rs. 10 Bn via Bond Issue
The Colombo Stock Exchange (CSE) has granted in-principle approval for DFCC Bank PLC to issue Basel III compliant, Tier 2 subordinated bonds to strengthen its capital base. • Issue Details: The bank will initially offer 70 million bonds at Rs. 100 each, with an option to issue an additional 30 million bonds if oversubscribed, totaling Rs. 10 billion. • Bond Structures & Rates: The offering consists of three types of unsecured, redeemable GSS+ bonds: Type A: 5-year tenure at 11.50% fixed p.a. Type B: 7-year tenure at 11.75% fixed p.a. Type C: 10-year tenure at 12.00% fixed p.a. • Timeline: The subscription list is scheduled to open on 6 February 2026. This move reflects ongoing efforts within the banking sector to enhance regulatory capital requirements and support long-term lending capacity.
📈 CSE Records 5.25% Monthly Growth Amid Mixed Trading
Despite closing the final sessions of the month on a downward note, the Colombo Stock Exchange (CSE) demonstrated strong resilience throughout January 2026, driven by sustained investor interest in key financial and industrial sectors. • Market Performance: The All Share Price Index (ASPI) gained 5.25% overall in January, despite a daily dip of 88.58 points (-0.37%) to close at 23,812.31 on the 30th. • Blue-Chip Activity: The S&P SL20 Index fell by 14.51 points to 6,641.15 during the final session, reflecting a slight correction in large-cap stocks. • Liquidity: Daily market turnover remained robust at Rs. 9.19 billion, indicating high participation levels compared to historical averages. • Summary: While the month ended with two consecutive days of losses, the overall 5.25% monthly appreciation signals a positive start for the year for Sri Lanka's capital markets. _Note: Based on provisional market data as of January 30, 2026._ ---
Indonesia Market Turmoil: $80 Bn Rout Triggers Regulatory Action 📈
• Market Crash: Indonesian stocks faced a massive selloff, erasing $80 billion in market value after an 8% drop over two days. This follows a warning from index provider MSCI regarding a potential downgrade to "frontier-market" status due to transparency concerns. • Economic Impact: The rupiah hit near-record lows of 16,745 against the US Dollar. Foreign capital outflows in 2025 reached $834 million, the worst since 2020. Goldman Sachs warns of potential further outflows of up to $7.8 billion if a downgrade occurs. • Regulatory Response: To restore investor confidence, authorities are doubling the free-float requirement for listed firms to 15% and increasing disclosure on shareholdings. Markets saw a modest late-day recovery following these announcements. • National Context: Analysts note that a downgrade would place Indonesia—currently an emerging market—into the "frontier market" category alongside countries like Sri Lanka, Vietnam, and Bangladesh. • Investor Concerns: Sentiment remains fragile due to a widening fiscal deficit and leadership changes at the central bank, which have shaken confidence in the nation's fiscal stewardship and institutional strength. _Note: Data based on market reports as of Jan 30, 2026._
Bullish Rs. 205 Bn Bond Auction Drives Yields Down 📈
Sri Lanka’s debt market displayed strong bullish momentum yesterday as the Public Debt Management Office successfully raised Rs. 179.06 Bn (87.35% of the total offer) across three maturities. The results reflect high market liquidity and a general decline in interest rates. • Auction Performance The auction saw robust demand with a bid-to-acceptance ratio of 2.38x. 01.03.30 maturity: Fully raised at 9.72%. 15.06.34 maturity: Fully subscribed at 10.92%. 01.07.37 maturity: Undersubscribed, issued at 11.08%. • Secondary Market Highlights The secondary bond market saw yields drop notably post-auction as traders shifted to the belly-to-long end of the curve. 2029 maturities traded between 9.60% and 9.65%. 2034-2037 tenors saw a bullish decline, trading down to 10.85% and 11.00% respectively. Total transacted volume reached Rs. 60.69 Bn. • Economic Indicators Liquidity: The money market surplus remained high at Rs. 194.26 Bn, keeping overnight rates stable around 7.69%–7.72%. Currency: The Rupee appreciated slightly, with the USD/LKR spot closing at Rs. 309.35/45 compared to the previous Rs. 309.60/67.
📈 CSE Ends Lower as ASPI Retreats from 24,000 Milestone
The Colombo stock market ended in the red for the fourth consecutive session as early gains above the 24,000 mark succumbed to profit-taking and cautious investor sentiment. • Market Performance Overview • ASPI: Down 0.38% (-91.22 points) to 23,900.89. • S&P SL20: Down 0.22% (-14.55 points) to 6,655.66. • Turnover: Rs. 6.9 Bn with 277.3 Mn shares traded. • Foreign Activity: Net outflow of Rs. 20.9 Mn. • Sector & Stock Highlights • Capital Goods: Led turnover (22% share) at Rs. 1.55 Bn, despite a sector index dip of 0.64%. Key activity seen in Hemas Holdings and Colombo Dockyard. • Real Estate: Second highest contributor; sector index rose 0.70% driven by Prime Lands Residencies (up Rs. 2.60 to Rs. 46.80). • Finance & Consumer: Softlogic Capital gained Rs. 1.40, while Ceylon Tobacco Company fell by Rs. 49.75. • Investor Sentiment & Liquidity • Market breadth was weak with 140 decliners against 77 gainers. • High net worth and institutional interest remained selective, while increased retail participation supported liquidity. • Crossings accounted for Rs. 1.76 Bn (25% of total turnover), notably in Prime Lands Residencies. Based on daily market provisional data.
Riyadh Hosts Landmark "Invest Sri Lanka" Capital Market Forum 📈
The first-ever Sri Lankan capital market investor forum was held in Saudi Arabia on 24 January 2026, aimed at showcasing the country's economic progress and high-growth opportunities to the Saudi business community and expatriate professionals. • Strategic Engagement: Organized by the SEC and CSE, the forum focused on educating participants on capital market developments and the broader macroeconomic recovery of Sri Lanka. • Key Highlights: - Focus on policy reforms, corruption-free governance, and financial sector stability. - Emphasis on banking, finance, manufacturing, construction, and ICT/BPM sectors as drivers for collaboration. - Highlights of the newly established Saudi–Sri Lanka Business Council to foster bilateral economic ties. • Leadership Presence: A high-level delegation, including the CBSL Governor, the Deputy Minister of Industry and Entrepreneurship, and the SEC/CSE leadership, engaged with attendees regarding regulatory frameworks and investment incentives. • Impact: The event served as a platform for professionals in Riyadh to explore investment pathways contributing to Sri Lanka's long-term prosperity and resilience.
## Equities Growth Driven by Domestic Investors in 2026 📈
Asia Securities PLC projects a strong year for Sri Lankan equities, forecasting a 20%–25% market upside driven primarily by record-level local participation rather than foreign inflows. • Investor Participation & Liquidity Active equity investors surged to 98,000 in 2025 (up from 60,000 in 2024). New CDS accounts tripled YoY, rising from 19,000 to 57,000. In the first three weeks of 2026 alone, 5,000 new accounts were opened. • Macro-Economic Drivers Interest Rates: Expected to fluctuate within a narrow range of 50–100 bps, maintaining the relative attractiveness of equities over fixed income. Taxation: Growth is supported by a 0% capital gains tax and a 15% withholding tax environment. Credit Confidence: Improving sovereign credit confidence is seen as vital for long-term foreign interest ahead of 2028 debt obligations. • Sector & Market Outlook Foreign Inflows: Viewed as "incremental upside" rather than a necessity for growth. Sector Trends: Investor interest is shifting from traditional blue chips toward growth-oriented digital and telecom sectors. Structural Needs: Emphasis placed on increasing market liquidity and listing larger companies, including potential State-Owned Enterprise (SOE) reforms, to attract global capital.
📈 CSE Ends Just Shy of 24,000 Milestone
The Colombo stock market showed resilient performance yesterday, briefly breaching the 24,000-point mark for the third consecutive session before closing just 7.89 points below the milestone. Market turnover rose by 9.9% over the monthly average to reach Rs. 6.9 Bn. • Overall Market Performance The All Share Price Index (ASPI) gained 0.13% (+31.95 points) to close at 23,992.11, having hit an all-time intra-day high of 24,068.22. The S&P SL20 index dipped slightly by 0.03% to 6,670.21. • Sector & Stock Highlights Capital Goods led the market with a turnover of Rs. 1.91 Bn (28% share). John Keells Holdings (JKH) was the top contributor in the sector, generating Rs. 0.79 Bn. Real Estate Management saw a 1.6% index gain, driven by Prime Lands Residencies (PLR), which recorded the day's largest crossing of Rs. 0.32 Bn. Diversified Financials also contributed significantly to total turnover. • Investor Sentiment & Activity Net foreign outflow: Rs. 480.2 Mn (foreigners were net sellers). Market breadth: 86 gainers vs. 140 decliners, indicating profit-taking and consolidation. Participation: Retail activity remained high, while High-Net-Worth (HNW) interest focused on value-driven counters like JKH and Senkadagala Finance. _Note: Market direction is expected to stabilize following the conclusion of the quarterly earnings season._
📈 Gold Breaches US$ 5,200: Global Rally Hits Sri Lankan Market
Gold prices hit a historic milestone on Wednesday, surging past US$ 5,200 per ounce for the first time. The rally is driven by a plunging U.S. Dollar—now at a 4-year low—and growing geopolitical uncertainty. • Global Market Figures Spot Gold: Rose 0.6% to US$ 5,219.97 per ounce (Record high: US$ 5,224.95). YTD Growth: Prices have skyrocketed over 20% since Jan 01, 2026. Silver & Platinum: Silver rose 0.6% to US$ 113.63 (up ~60% in 2026), while Platinum gained 1.5% to US$ 2,679.15. • Domestic Impact (Sri Lanka) Local Prices: Reflecting global trends, a 24-carat gold sovereign in the Colombo Pettah market reached Rs. 362,200, while 22-carat stood at Rs. 397,000. Daily Hike: Domestic prices saw a sharp increase of approximately Rs. 12,000 within the last 48 hours. • Economic Context Currency Factor: Trump’s recent signals for a weaker "greenback" and a 11.5-year low in U.S. consumer confidence have intensified the "flight to safety." Future Outlook: Analysts at Deutsche Bank forecast gold could reach US$ 6,000 per ounce in 2026 due to aggressive central bank allocations.
📈 CSE Ends Marginally Up; Hovers Near 24,000 Barrier
The Colombo stock market showed resilience yesterday, briefly crossing the 24,000-mark before retreating to close with marginal gains amid subdued investor sentiment. • Market Performance Overview Summary: • All Share Price Index (ASPI): 23,960.16 (up 0.03% | +7.07 points) • S&P SL20 Index: 6,672.37 (up 0.14% | +9.25 points) • Market Turnover: Rs. 5.2 Bn • Market P/E: 11.36 • Sector & Stock Highlights: • Capital Goods: Led turnover with a 31% share; sector index rose 0.83%. John Keells Holdings (JKH) and Colombo Dockyard (DOCK) were primary drivers. • Diversified Financials & Banking: Contributed a combined 21% to daily turnover. • Top Gainers: JKH, HAYL, DOCK, GRAN, and NHL. • Investor Activity: • Participation: High Net Worth (HNW) involvement remained low; activity was largely driven by retail interest in penny stocks and average retail volume. • Foreign Interest: Remained net sellers with a net outflow of Rs. 128.2 Mn. NTB saw the highest net foreign buying (Rs. 17.4 Mn), while JKH saw the highest net foreign selling (Rs. 114.3 Mn). • Market Breadth: Negative, with 130 decliners outweighing 113 gainers.
📈 HSBC Hits Historic US$ 300 Bn Market Cap
• Banking Sector Milestone: Shares in HSBC surged 3% to a record high on Tuesday, briefly pushing its market valuation above US$ 300 Bn. This performance positions the lender neck-and-neck with AstraZeneca for the top spot in the London FTSE 100 index. • Share Performance: • Current Price: £ 12.77 (up 2.8% on Tuesday). • YTD Growth: Nearly 9% gain so far in 2026. • Index Impact: HSBC was the top gainer on the FTSE 100, which rose 0.6% overall. • Sector Outlook: • British lenders, including HSBC and NatWest, are expected to raise profit targets during upcoming earnings reports, following similar moves by European peers. • The FTSE 350 Banking Index has gained 6% this year, outperforming the Eurozone banking sector's 4.2% rise. • National Context: As a major player in financial services, the bank's valuation growth reflects high investor confidence in the sector's profitability and its role in global capital markets.
📈 Secondary Bond Market Subdued Ahead of High-Stakes Week
The Sri Lankan secondary bond market began the week on a defensive note as investors brace for several major economic indicators and auctions scheduled for late January. • Market Outlook & Key Events: Market participants are awaiting the first Monetary Policy Announcement of 2026 and a Treasury Bill auction on January 28. This is followed by a Treasury Bond auction on January 29 and the January CCPI inflation print on January 30. • Bond Auction Details: A total of Rs. 205 billion will be offered across three maturities: • Rs. 60 billion: 01.03.2030 (9.50% coupon) • Rs. 80 billion: 01.06.2034 (10.75% coupon) • Rs. 65 billion: 01.07.2037 (10.75% coupon) • Secondary Market Yields: Yields edged marginally higher with transactions focused on the following maturities: • 2027: 8.90% • 2028: 9.05% to 9.25% • 2029: 9.65% to 9.67% • 2030: 9.70% to 9.72% • 2035: 10.95% to 10.98% • Liquidity & Currency: • Market Liquidity: Net surplus recorded at Rs. 169.74 billion. • Currency: The Rupee appreciated slightly, with the USD/LKR spot contract closing at Rs. 309.50/309.60 compared to the previous close of Rs. 309.76/309.80. • Forex Volume: US$ 71.95 million (as of Jan 23).
CSE Briefly Hits 24,000 Milestone Before Ending Flat 📈
• Market Performance The All Share Price Index (ASPI) reached a historic all-time high of 24,052.06 in early trading before losing momentum. It closed at 23,953.09, down a marginal 0.01% (3.42 points). In contrast, the S&P SL20 index rose by 0.20% to end at 6,663.12. • Turnover & Trading Volume Daily turnover exceeded Rs. 5.4 Bn with approximately 195 million shares traded. Strategic portfolio rebalancing and sector rotation were prominent as the market entered a consolidation phase near the 24,000 psychological level. • Sector & Stock Highlights • Capital Goods led market activity with a 29% share of turnover. • Food, Beverage & Tobacco and Diversified Financials followed, collectively contributing 27%. • Top Trades: LOLC (Rs. 503.6 Mn) and Browns Group (Rs. 422.6 Mn) led turnover. YORK.N saw a significant price surge of 24.81%. • Crossings: Rs. 0.45 Bn (8% of turnover), with the largest recorded in CARG.N (Rs. 0.15 Bn). • Investor Sentiment Foreign investors recorded a net outflow of Rs. 25 Mn. Market breadth was slightly negative with 126 decliners against 95 gainers, reflecting cautious near-term sentiment despite the early record-breaking peak.
Mixed Performance at CSE; ASPI Dips While S&P SL20 Gains 📈
The Colombo Stock Exchange recorded a mixed session today (26), with the two main indices moving in opposite directions amidst selective buying interest. • Overall Figures: • The All Share Price Index (ASPI) declined marginally by 3.42 points (-0.01%) to close at 23,953.09. • The S&P SL20 Index gained 13.62 points (+0.20%), settling at 6,663.12. • Market turnover for the day stood at Rs. 5.49 billion. • Sector & Stock Highlights: • The ASPI breached the 24,000-point psychological level during early trading but eased in the second half. • Capital Goods (Rs. 1.6 Bn) was the most active sector, followed by interest in construction and real estate. • Top positive contributors included Melstacorp, Harischandra Mills, and LOLC Holdings. • Context: Market activity remains stable following the historic 24,000-point milestone reached last week, supported by high domestic participation and positive sentiment in diversified sectors.
📈 Gold Hits Historic US$ 5,000 Milestone Amid Global Volatility
Global gold prices shattered records on Monday, surging past the psychological US$ 5,000 per ounce barrier. The rally is driven by intense safe-haven demand as investors navigate heightening geopolitical tensions and a "crisis of confidence" in traditional assets. • Global Market Performance: • Spot Gold: Rose 1.79% to reach a record high of US$ 5,071.96/oz. • 2026 Gains: Prices have already climbed over 17% this year, following a massive 64% surge in 2025. • Forecast: Analysts at Metals Focus predict a potential peak of US$ 5,500/oz later this year. • Impact on Sri Lanka: • Local Prices: Following the global spike, the price of a 22-carat gold sovereign in Colombo’s Pettah market reached Rs. 397,800 today (26 Jan), a significant jump from early January rates. • Industrial Shift: Domestic authorities are reportedly exploring the establishment of a gold refinery to bypass high import taxes (>45%) and trade restrictions. • Reserves: The Central Bank of Sri Lanka (CBSL) maintained gold reserves valued at approx. US$ 86.15 Mn as of Dec 2025, though physical holdings remain at a historically low 0.47 tonnes. • Other Precious Metals: • Silver: Surged 4.57% to US$ 107.65/oz, continuing its record-breaking momentum. • Platinum & Palladium: Gained 3.26% and 3.2% respectively, reflecting a broad-based rally in metals. _Summary based on market data as of Jan 26, 2026._
Secondary Bond Market Rallies as Yield Curve Shifts Downward 📈
Sri Lanka’s secondary bond market saw a strong performance last week, driven by a surge in system liquidity and institutional demand. • Liquidity & Money Market: Overnight liquidity hit a six-month high, exceeding Rs. 200 Bn. This abundance pushed the weighted average call money and repo rates down to 7.76% and 7.77% respectively, easing from the previous week's highs. • Secondary Bond Performance: Yields declined across the curve due to aggressive buying pressure. • Short-term: 2026 maturities traded between 8.35%–8.30%. • Medium-term: 2028 tenors saw yields drop as low as 9.05%. • Long-term: 2035 maturities declined to the 11.15%–10.98% range, supported by significant block buying. • Treasury Bill Auction: Yields fell across all maturities, reversing a four-week upward trend. • 91-day: 7.93% (-2 bps) • 182-day: 8.36% (-8 bps) • 364-day: 8.47% (-1 bp) Total raised amounted to Rs. 137.50 Bn across both phases, with strong investor appetite. • Foreign Holdings & Forex: Foreign holdings of rupee securities saw a net outflow of Rs. 550 Mn, bringing the total to Rs. 139.93 Bn. The USD/LKR remained steady, closing the week at Rs. 309.76/309.80. _Data based on weekly reports from Wealth Trust Securities and CBSL._
Sri Lanka Investor Forum in Dubai Showcases 2025 Market Surge 📈
The Colombo Stock Exchange (CSE) and Securities and Exchange Commission (SEC) hosted a strategic investor forum in Dubai to highlight Sri Lanka’s robust capital market performance and economic outlook. • Market Performance: Sri Lanka’s stock market emerged as the third-best performer in the region for 2025. • All Share Price Index (ASPI): Closed at 22,624 points, marking a significant 42% YoY growth. • S&P SL20 Index: Rose to 6,157 points, reflecting a 27% YoY increase in liquid blue-chip stocks. • Regional Comparison: With a 42% gain, Sri Lanka trailed only South Korea (76% YoY) and Pakistan (45% YoY) in regional performance rankings. • Key Participation: The forum featured high-level insights from the Central Bank Governor, Deputy Minister of Industry and Entrepreneurship Development, and leadership from the SEC and CSE. Discussions focused on sustaining growth and attracting foreign portfolio investment to the financial services and capital markets sectors.
Global Crypto Market Surpasses US$ 4 Tn Milestone in 2025 📈
A report by Binance Research highlights that the global cryptocurrency market hit a historic US$ 4 trillion valuation in 2025, driven by institutional adoption and regulatory progress. Despite this, macroeconomic volatility led to a year-end market decline of 7.9%. • Market Performance & Bitcoin: Total market value fluctuated between US$ 2.4 - 4.2 trillion (76% trading range). Bitcoin (BTC) maintained dominance at 58–60% with a market cap near US$ 1.8 trillion, though it ended the year slightly lower, underperforming gold and equities. • Sector & Ecosystem Highlights: Solana: Secured U.S. spot ETF approval and maintained high transaction volumes. BNB Chain: Best-performing major asset, driven by retail participation and real-world assets. Ethereum: Remained the leader in DeFi liquidity, though Layer 2 fragmentation remains a challenge. • Institutionalization of DeFi & Stablecoins: DeFi Total Value Locked (TVL) reached US$ 124.4 billion. Stablecoins grew by nearly 50% to over US$ 305 billion, with daily volumes averaging US$ 3.54 trillion. Real-world assets (RWA) reached a US$ 17 billion TVL, signaling a shift toward cash-flow-generating infrastructure. • Outlook for 2026: Analysts predict a liquidity-driven expansion for 2026, supported by global monetary easing, deregulation, and deeper institutional participation in on-chain financial infrastructure.
📈 CSE Hits Record High: ASPI Nears 24,000 Milestone
The Colombo stock market concluded the week on a significant high, with the benchmark index now less than 50 points away from a historic psychological barrier. • Market Performance Indices The ASPI gained 142.74 points (0.60%) to close at 23,956.51, while the S&P SL20 rose by 31.65 points (0.48%) to end at 6,649.50. On a week-on-week basis, the ASPI climbed 224.9 points. • Turnover and Liquidity Daily turnover reached Rs. 10.5 Bn, an 83.1% surge above the monthly average of Rs. 5.7 Bn. Total volume stood at 256 million shares. Average daily turnover for the week rose 27.5% to Rs. 7.7 Bn. • Sector and Stock Highlights The Capital Goods sector dominated activity with a 39% share of turnover. Diversified Financials and Real Estate followed, contributing a combined 26%. Top index contributors included LOLC, DOCK, COMB, BIL, and MELS. • Investor Sentiment Heightened participation from High-Net-Worth (HNW) and retail investors drove the indices to all-time highs. However, foreign investors remained net sellers with a daily net outflow of Rs. 82.1 Mn and a weekly net outflow of Rs. 1.07 Bn (an improvement from the Rs. 1.66 Bn outflow the prior week).
📈 Colombo Bourse Crosses Historic 24,000 Milestone
The Colombo Stock Exchange (CSE) reached a significant landmark today, marking a record high in market performance driven by robust investor confidence. • Market Milestone: The All Share Price Index (ASPI) surpassed the 24,000-point level for the first time in history during intraday trading at approximately 1:20 p.m. • Market Sentiment: Analysts attribute this historic peak to sustained buying interest and strong bullish sentiment across key sectors, reflecting positive expectations for the broader macroeconomic environment. • Trading Activity: The achievement underscores a period of heightened activity in the capital markets, serving as a key indicator of investor trust in Sri Lanka’s corporate earnings and economic trajectory. _Summary based on intraday market data for January 23, 2026._
📈 Gold Prices Hit Record High; Local Markets Under Pressure
Global gold prices surged to an all-time high of US$ 4,904.66/ounce on January 22, driven by escalating geopolitical tensions, a weakening US dollar, and expectations of US Federal Reserve interest rate cuts. • Global Outlook & Targets Goldman Sachs has revised its 2026 price target upward to US$ 5,400/ounce (from US$ 4,900), citing aggressive central bank accumulation—averaging 60 tonnes per month—and rising demand for gold ETFs from private investors. • Domestic Price Impact The global rally has caused a sharp spike in Sri Lankan markets (provisional data): 24-Carat Gold: Priced at approx. Rs. 419,100 per pawn (8g). 22-Carat Gold: Reached approx. Rs. 384,200 per pawn (8g). Silver: Also gained 3.5% globally, reaching US$ 96.45, mirroring the trend in precious metals. • Economic Implications Gems, Diamonds & Jewellery: The sector—traditionally a key foreign exchange earner (approx. US$ 282 Mn in 2024)—faces severe domestic demand contraction (over 50%) due to record-high prices and the 18% VAT impact. Financial Services: Rising collateral values are boosting the pawning and gold-backed lending volumes across banks and NBFIs. Reserves: Sri Lanka's gold reserves stood at US$ 86.15 Mn as of December 2025; the current rally provides a significant valuation lift to these national assets. • Market Drivers The "safe-haven" rush is intensified by central banks diversifying away from the US dollar, which fell 0.3% on the Bloomberg Dollar Spot Index.
📈 Bond Yields Slide as Market Rally Intensifies
Sri Lanka’s secondary bond market maintained a bullish momentum yesterday, with yields continuing their downward trajectory driven by strong institutional demand. • Market Sentiment & Activity The market shifted from early consolidation to a late-day rally. Activity remained robust, fueled by balance-sheet driven demand from major institutions. Total transacted volume for Treasury Bonds/Bills reached Rs. 81.83 Bn (as of Jan 21). • Key Yield Movements Yields saw a notable decline across various maturities: 2028 Maturities: Traded between 9.11% and 9.15%. 2029 Maturities: Ranged from 9.55% to 9.67%. 2030 Maturities: Hovered between 9.70% and 9.72%. Longer Tenure: The 15.06.35 maturity traded between 11.03% and 11.06%. • Liquidity & Money Market The net liquidity surplus decreased slightly to Rs. 157.54 Bn. The Standing Deposit Facility Rate (SDFR) stood at 7.25%, while the Standing Lending Facility Rate (SLFR) remained at 8.25%. Weighted average rates for call money and repo were 7.79% and 7.80% respectively. • Forex Trends The LKR saw a marginal depreciation against the USD, with spot contracts closing at Rs. 309.75/309.85 (vs Rs. 309.72/309.80 previously). Total traded volume stood at US$ 56.05 Mn.
📈 CSE Inches to New High Amid Volatile Session
The Colombo Bourse ended flat yesterday as the benchmark index reached a new peak despite selling pressure. The ASPI rose by 0.03% (7.45 points) to 23,813.77, while the active S&P SL20 marginally declined by 0.02% to 6,617.85. • Market Turnover: Recorded at Rs. 8.3 Bn, marking a significant 48.6% increase over the monthly average. Crossings accounted for Rs. 2 Bn (24% of total turnover). • Sector Performance: • Capital Goods: Led turnover with a 25% contribution, primarily driven by Colombo Dockyard. • Food, Beverage & Tobacco: Contributed 19% to turnover; sector index rose by 0.39% with gains in Renuka Agri Foods (+8.16%). • Banking: Accounted for 15% of daily activity, with Hatton National Bank (HNB) and DFCC acting as top positive contributors. • Investor Sentiment: • Foreign Participation: Remained subdued with a net outflow of Rs. 144.6 Mn. • HNW & Institutional: High interest noted in Renuka Foods, Laugfs Gas, and Pan Asia Bank. • Market Breadth: Weakened slightly with 108 gainers against 109 decliners. • Top Gainer Highlight: United Motors Lanka (UML) saw a strong 8.46% price gain on a turnover of Rs. 0.36 Bn.
📈 T-Bill Yields Decline After 5-Week Rally
Treasury Bill yields eased across all maturities at the latest auction, marking the first decline in five weeks and signaling a shift in the debt market sentiment. • Yield Movements • 91-Day: 7.93% (-2 bps) • 182-Day: 8.36% (-8 bps) • 364-Day: 8.47% (-1 bp) • Auction Results The Public Debt Management Office raised Rs. 112.48 Bn (89.99% of the Rs. 125 Bn offered). Despite being marginally undersubscribed, total bids reached 2.81 times the offered volume, showing robust investor appetite. • Secondary Bond Market Activity remains healthy with consolidation in yields. Key trades included the 2028 maturities within the 9.05%-9.20% range and the 2031 maturity at 10.00%-9.98%. Total secondary market volume reached Rs. 13.95 Bn. • Money & Forex Markets • Liquidity: Net surplus remains high at Rs. 189.06 Bn. • Forex: The USD/LKR spot contract slightly depreciated to close at Rs. 309.72/309.80, with a daily traded volume of US$ 88.70 Mn. Constructive sentiment continues to be supported by a strong liquidity backdrop and favorable money market conditions.
📈 CSE Rebounds: ASPI Hits New Record High
The Colombo stock market staged a strong recovery yesterday, with the benchmark index reaching an all-time high amid sustained buying pressure. The ASPI rose 0.77% (+182.58 points) to settle at a record 23,806.32, while the blue-chip S&P SL20 climbed 1.14% to 6,619.32. • Market Performance & Liquidity Turnover surged to Rs. 9.8 Bn, marking a significant 86.6% increase over the monthly average of Rs. 5.3 Bn. Over 180.3 million shares were traded, though foreign investors remained net sellers with a net outflow of Rs. 51.1 Mn. • Sectoral Highlights • Capital Goods: The top contributor (44% of turnover), gaining 2.66% led by Colombo Dockyard (+Rs. 29.50) and Hayleys (+Rs. 30.50). • Banking: The second highest contributor, led by Hatton National Bank (+Rs. 2.75) and Sampath Bank. • Food, Beverage & Tobacco: Contributed to a collective 28% of turnover alongside banking. • Investor Sentiment Buying was driven by High Net Worth (HNW) and institutional interest in banking, diversified financials, and construction. Broad market interest remained strong in export-oriented companies as investors reacted to recent LKR depreciation, which enhances competitiveness for global trade. • Top Gainers Key price appreciation was seen in Colombo Dockyard (Rs. 143.25), Hayleys (Rs. 248.50), and Renuka Foods (+Rs. 5.10).
Gold Surges Past US$ 4,800 Amid US-EU Geopolitical Tensions 📈
• Global Market Impact: Spot gold prices hit a historic record of US$ 4,843.67 per ounce, currently trading at US$ 4,821.26 (+1.2%). This surge is driven by intense safe-haven demand as geopolitical friction rises between the US and Europe over the status of Greenland. • Currency & Bonds: The US Dollar has weakened to a three-week low against the Euro and Swiss Franc. Investors are pivoting away from US Treasuries and the greenback toward precious metals due to diminishing confidence in US fiscal stability following fresh tariff threats at Davos. • Precious Metals Breakdown: • Gold: Up 1.2% to US$ 4,821.26 (Futures at US$ 4,813.50). • Silver: Down 1% to US$ 93.59 following a record high on Tuesday. • Platinum: Down 0.7% to US$ 2,445.96 after scaling record peaks earlier. • Palladium: Trading down 0.5% at US$ 1,857.19. • National Context: For Sri Lanka, record-high gold prices typically exert upward pressure on the jewelry industry and can impact the cost of gold-backed lending (pawning), a critical source of micro-liquidity for the local economy. • Monetary Outlook: The US Federal Reserve is expected to hold rates steady at the Jan 27-28 meeting. Non-yielding assets like gold continue to perform strongly in this high-uncertainty, low-interest-rate environment.
📈 Liquidity Surge Drives Bond Rally & Rupee Appreciation
The Sri Lankan money market hit a six-month high in liquidity, significantly boosting sentiment in the secondary bond market and contributing to a strengthening Rupee. • Liquidity & Rates Market surplus reached Rs. 200.77 Bn, a recent peak and a ~205% increase from December lows of Rs. 65.92 Bn. Consequently, overnight call money and Repo rates dropped to 7.90% and 7.91% respectively. • Secondary Bond Market A strong rally was observed across the yield curve, fueled by institutional demand and lower funding constraints. Key trades included: 2026 maturities: 8.35% – 8.30% 2031 maturities: Notable decline to 10.10% – 10.00% 2035 maturities: 11.10% – 11.07% on high volumes. • Treasury Bill Auction A Rs. 125 Bn auction is scheduled for today (21 Jan), offering: 91-day: Rs. 40 Bn 182-day: Rs. 65 Bn 364-day: Rs. 20 Bn The total offer is slightly below the maturing volume of Rs. 133.58 Bn. • Forex Market The Sri Lankan Rupee appreciated, with the USD/LKR spot rate closing at Rs. 309.65/70 (vs. Rs. 309.72/77 previously). Daily traded volume stood at US$ 80.61 Mn. _Note: Based on provisional market data as of 21 January 2026._
## CSE Ends Flat Amid Cautious Investor Sentiment 📈
The Colombo Bourse showed mixed performance yesterday as investors adopted a selective approach, favoring large-cap stocks while engaging in mild profit-taking across the broader market. • Market Indices: The ASPI edged down by 0.02% (4.13 points) to 23,623.74, while the S&P SL20 rose slightly by 0.08% (5.45 points) to close at 6,544.80. • Liquidity & Turnover: Daily turnover reached nearly Rs. 5.17 Bn with 134.5 million shares traded. The Capital Goods sector dominated activity, contributing 49% of the total turnover. • Key Sector Contributions: • Capital Goods, Materials, & Banking: Combined for a significant portion of daily volume. • DOCK: Contributed Rs. 1.3 Bn (24.8% of turnover) following a rights issue share conversion. • Banking & Insurance: Remained among the top sectors leading market activity. • Investor Activity: • Foreign Interest: Recorded a net outflow of Rs. 91 Mn. Net buying was highest in MELS (Rs. 27 Mn), while net selling peaked in TKYO (Rs. 112.6 Mn). • Crossings: Accounted for 15.4% of turnover, led by RHL, TKYO, and DIST. • Market Breadth: Remained negative with 126 decliners against 107 gainers. The market Price-to-Earnings (P/E) ratio stood at 11.21.
Sri Lanka Money Market Liquidity Surges to 4-Month High 📈
• Liquidity & Rates: Overnight money market liquidity jumped to Rs. 196.08 Bn, the highest level since September 2025. This surplus, parked at the 7.25% SDFR, led to a decline in market rates, with Call Money and Repo rates averaging 7.96% and 7.93% respectively. • Secondary Bond Market: Recovery momentum continued as yields dropped across multiple tenors due to healthy institutional buying. • 2028 Tenors: Traded between 9.10% – 9.15%. • 2029 Tenors: Yields ranged from 9.60% – 9.68%. • 2035 Tenors: Dropped to 11.10% on block buying interest. • Total transacted volume for the sector reached Rs. 17.83 Bn. • Lending Trends: The Average Weighted Prime Lending Rate (AWPR) fell by 21 basis points to 8.98% as of mid-January, reflecting the broader moderation in borrowing costs for the banking & finance sector. • Forex Market: The Sri Lankan Rupee remained broadly steady against the US Dollar, with spot contracts closing at Rs. 309.72/309.77. The daily traded volume was recorded at US$ 59.50 Mn.
### Colombo Stock Market Opens Week in the Red 📈
The Colombo Stock Exchange (CSE) experienced a downward trend yesterday as the week commenced, primarily driven by a significant foreign outflow and mid-day volatility. • Overall Market Performance The benchmark ASPI declined by 0.44% (103.73 points) to close at 23,627.87. The active S&P SL20 also dipped 0.32% to 6,539.35. Market turnover remained healthy at approximately Rs. 4.7 Bn, with over 214.2 million shares changing hands. • Sectoral Insights Capital Goods: Emerged as the top contributor, accounting for 27% of turnover, despite the sector index falling 0.58%. Notable activity was seen in ACL Cables and Colombo Dockyard. Banking & Materials: Collectively contributed 29% to daily turnover. Tokyo Cement was a key driver in the materials space. Hotels & Tourism: Retail investors showed strong interest in this sector ahead of the upcoming earnings season. • Investor Activity Foreign Investors: Emerged as net sellers with a significant net outflow of Rs. 697.9 Mn. Retail & HNW: High net worth (HNW) and institutional participation were concentrated in telecommunications (Dialog Axiata) and construction-related counters. Retail activity remained high in speculative and hotel-sector stocks. • Key Stock Movements Top negative contributors to the ASPI included Colombo Dockyard, Commercial Bank, and Nations Trust Bank. Conversely, Dialog Axiata and Citrus Leisure bucked the trend to post marginal gains.
📈 US-EU Trade Tension Hits Global Markets; Sri Lanka Exports at Risk
Global stocks and the dollar dipped on Monday as President Trump threatened new 10% to 25% tariffs on 8 European nations over a Greenland purchase dispute. This escalation, coupled with existing US trade pressures, creates a volatile environment for Sri Lankan markets. • Overall Market Impact: • US S&P 500 futures fell 0.7%; Nasdaq futures down 1.0%. • European markets (DAX/EUROSTOXX) slid 1.1% on retaliatory fears. • Gold hit an all-time high of US$ 4,664/oz as investors sought safety. • Brent Crude eased 0.5% to US$ 63.84/bbl amid global growth concerns. • Sector Breakdowns & Sri Lanka Exposure: • Apparel & Textiles: Most vulnerable sector; industry experts warn that prolonged US-EU trade wars could dampen demand in Sri Lanka’s two largest export destinations. • Tea: Vulnerable to secondary US sanctions; tea exports (earning US$ 1.4 Bn in 2025) face risks if barter deals with nations like Iran trigger additional 25% US "punishing duties." • ICT/BPM: Remains a crucial buffer; services exports reached US$ 5 Bn in 2025, though global market instability may impact future contract scaling. • Strategic Outlook: With Sri Lanka's foreign reserves at US$ 6.1 Bn (as of end-2025), the economy faces a "weaponization of capital." Analysts suggest Sri Lanka must accelerate trade diversification toward East Asia to mitigate the impact of a potential 30%-44% US tariff scenario on garments and rubber products. _Note: Summary based on provisional market data and current geopolitical developments as of Jan 19, 2026._
📈 CSE Market Update: ASPI Hits New High Amid Flat Closing
The Colombo stock market concluded the week on a positive note, with the benchmark index reaching a fresh peak despite marginal daily movement. • Market Performance (Daily) ASPI: Closed at 23,731.60 (+0.10%), a new record high. S&P SL20: Closed at 6,560.08 (+0.28%). Turnover: Recorded at Rs. 4.73 Bn with 132.5 Mn shares traded. • Weekly Summary The ASPI gained 0.32% (77.3 points) over the week, while the S&P SL20 rose by 0.87% (57.06 points), adding approximately Rs. 42.1 Bn in market value. • Sector & Investor Activity Banking Sector: Remained the primary driver, contributing 38% of total turnover. High Net Worth (HNW) participants showed significant interest here. Capital Goods & Food, Beverage & Tobacco: Combined for 25% of the market turnover. Foreign Interest: Foreign investors remained net buyers with a net inflow of Rs. 65.3 Mn. Top Contributors: Key movers included COMB, DFCC, CTHR, NAMU, and COOP. The market displayed volatility throughout the day, experiencing an early rally and mid-day dip before recovering steadily toward the close. Based on provisional market data.
Global Oil Prices Sink on Supply Boost & Eased Tensions 📈
Global oil benchmarks dropped significantly yesterday as geopolitical risks eased and supply outlooks improved, signaling a shift toward a more balanced market. • Overall Market Shift Global crude benchmarks fell by over 3%, reversing recent multi-month highs. Brent crude retreated to the mid-US$ 64 per barrel range, while US West Texas Intermediate (WTI) slipped below US$ 60 per barrel. • Geopolitical Drivers The "risk premium" unwound after remarks from the US President indicated a reduction in imminent military escalation and violent suppression in Iran. This softened market anxiety regarding potential disruptions to Iranian oil flows. • Supply & Demand Data US inventory data showed a larger-than-expected increase in both crude and petrol stocks, indicating softer short-term demand. New supply data from the United States, Venezuela, and the Middle East suggest a looming oversupply. • Impact on Sri Lanka Context As a net importer of energy, lower global prices typically offer relief to Sri Lanka's trade balance and foreign reserves. However, local fuel prices remain subject to the monthly pricing formula, which also factors in the exchange rate. Based on recent data, local prices were hiked on January 5th due to prior global trends and rupee depreciation (approx. LKR 309/US$), meaning this global drop may only influence the February revision.
📈 Bond Market Recovery Continues as Yields Move Lower
The secondary bond market maintained its recovery momentum on Wednesday, driven by strong buying interest and increased market depth. Strategic accumulation by participants led to significant transaction volumes, particularly in long-term maturities. • Market Performance: Yields trended lower across various maturities due to balance-sheet driven demand. Notable trades included: • Short-term: 2026 maturities traded between 8.40% - 8.42%. • Medium-term: 2028 maturities saw yields ranging from 9.10% to 9.35%. • Long-term: 2035 maturity experienced concentrated demand, with yields dropping from 11.25% to 11.17%. • Total Volume: Secondary market transactions for Treasury Bonds/Bills reached Rs. 18.53 Bn on Jan 13. • Money Market Liquidity: Net liquidity surplus rose to Rs. 182.72 Bn. • Standing Deposit Facility (SDFR): Rs. 182.81 Bn at 7.25%. • Call Money & Repo Rates: Weighted averages stood at 7.96% and 7.97% respectively. • Forex Market: The LKR saw a slight depreciation against the USD, closing at Rs. 309.35/309.50 compared to the previous day's Rs. 309.20/309.30. Total traded volume was US$ 78.38 Mn. _Data based on Wealth Trust Securities and Central Bank of Sri Lanka provisional reports._
📈 CSE ASPI Hits New Historic All-Time High
The Colombo Stock Exchange (CSE) benchmark All Share Price Index (ASPI) reached an unprecedented milestone today, closing at its highest level in history. • Overall Market Performance The benchmark ASPI gained 100.90 points (+0.43%) to finish at 23,708.70, breaking the previous record of 23,659.70 set in November 2025. The blue-chip S&P SL20 index also saw a strong uptick, rising 63.65 points (+0.98%) to close at 6,558.41. • Sector & Market Drivers Investor sentiment remains bolstered by the recovery of the financials and industrials sectors. Recent data indicates the financials sector (accounting for ~60% of the S&P SL20) continues to lead market momentum, while the capital goods and food, beverage & tobacco sectors remain dominant in daily turnover. • Key Highlights • Record High: ASPI 23,708.70. • Growth: S&P SL20 increased by nearly 1% in a single session. • Context: The rally reflects growing confidence in the banking sector's profitability and broader structural reforms in the 2026 economic landscape. _Note: Based on market closing data from January 14, 2026._
📈 T-Bill Yields Rise Marginally Amid Market Recovery
The weekly Treasury Bill auction saw weighted average yields increase for the fourth consecutive week, though the upward momentum showed signs of moderating. • Auction Results & Yields: 91-day: 7.95% (+7 bps) 182-day: 8.44% (Steady) 364-day: 8.48% (+1 bps) • Subscription Highlights: The auction was marginally undersubscribed, raising Rs. 96.43 Bn out of an offered Rs. 100 Bn (96.43% acceptance). Despite the slight shortfall, total bids received were high at 3.47 times the offered volume, with the 182-day tenor exceeding its specific target. • Secondary Bond Market: Yields initially climbed but recovered late-session due to renewed buying interest. Key trades included the 15.09.27 maturity at 9.00% and the 15.06.35 maturity at 11.15%-11.20%. Total transacted volume reached Rs. 84.05 Bn. • Market Liquidity & Forex: The net liquidity surplus stood at Rs. 151.97 Bn. In the Forex market, the LKR depreciated marginally, with the USD/LKR spot contract closing at 309.20/309.30 compared to the previous 309.00/309.10. _Data based on Wealth Trust Securities and CBSL figures._
CSE Indices End Flat Amid Mixed Interest 📈
The Colombo stock market remained steady for the second straight session, with indices closing marginally lower despite healthy turnover levels. • Overall Market Performance The All Share Price Index (ASPI) edged down by 0.71 points to 23,607.80. The S&P SL20 index also dipped by 0.12% (7.69 points) to close at 6,494.76. Total market turnover reached over Rs. 4.9 Bn, with approximately 133.3 million shares changing hands. • Investor Activity Foreign investors recorded a net inflow of Rs. 22 Mn. High net worth and institutional activity was concentrated in banking and diversified financials, specifically Citizens Development Business Finance, Melstacorp, and Hatton National Bank. Retail interest remained strong in speculative counters and the real estate sector. • Sector Breakdowns • Capital Goods: Emerged as the top turnover contributor (19%), led by Sierra Cables which saw its price rise by Rs. 1.30 to Rs. 36.30, despite the sector index falling 1.43%. • Banking: The second highest contributor, accounting for a significant portion of the 29% share held together with diversified financials. The sector index rose 0.34%, supported by Commercial Bank which edged up to Rs. 219.75. • Real Estate: Attracted notably higher interest alongside foreign currency-earning counters. • Top Laggards Price losses in blue-chip diversified holdings like John Keells Holdings (JKH), alongside Colombo Dockyard and DFCC Bank, weighed on the ASPI.
📈 Alphabet Joins US$ 4 Trillion Club Amid AI Surge
Alphabet hit a historic US$ 4 trillion market valuation on Monday, reclaiming its position as the world’s second most valuable company. The milestone reflects a massive shift in investor sentiment, with the stock surging 65% in 2025—outperforming its "Magnificent Seven" peers. • Overall Performance & Valuation Alphabet's market cap briefly touched the US$ 4 Tn mark as Class-A shares hit a record high of US$ 334.04. It is now the fourth company to reach this milestone, following Nvidia, Microsoft, and Apple. • Strategic Sector Highlights Artificial Intelligence (AI): Sentiment was bolstered by a landmark multi-year deal where Apple will base its next-generation AI models and Siri on Google's Gemini. Cloud Computing: Revenue for the cloud unit jumped 34% in Q3, supported by a backlog of unrecognized sales contracts totaling US$ 155 Bn. ICT & Hardware: Growth is further accelerated by renting proprietary AI chips to external firms, with Meta reportedly in talks for a multi-billion dollar deal starting in 2027. • Market Outlook The company successfully allayed concerns over its AI strategy through the launch of Gemini 3. Regional momentum remains strong, with Samsung planning to double its Gemini-powered mobile devices this year. Core advertising revenue remains steady despite global economic uncertainty. • Regulatory Context A September court ruling against breaking up the company—allowing it to retain control of Chrome and Android—has further stabilized the stock’s growth trajectory.
📈 Bond Auction Raises Rs. 184.79 Bn; Mixed Yield Results
Sri Lanka successfully raised 90.14% of its Rs. 205 Bn Treasury Bond offering in the latest auction, with the bid-to-acceptance ratio reaching 1.86 times. While short and long-term rates remained stable, middle tenors saw an unexpected uptick. • Bond Auction Highlights • Total Raised: Rs. 184.79 Bn (out of Rs. 205 Bn offered). • 2030 Maturity: Fully raised at a weighted average yield of 9.74%. • 2033 Maturity: Fully subscribed at 10.65%, exceeding market expectations. • 2035 Maturity: Undersubscribed, settling at a higher yield of 11.08%. • 2039 Maturity: Fully subscribed at 11.09%, showing a narrow term premium. • Treasury Bill & Money Market • Upcoming T-Bill Auction: Rs. 100 Bn on offer today to cover maturing volumes (Rs. 104.68 Bn). • Previous T-Bill Performance: Yields rose for the third consecutive week; 91-day at 7.88%, 182-day at 8.44%, and 364-day at 8.47%. • Liquidity: A net surplus of Rs. 168.89 Bn recorded, currently held at the CBSL's Standing Deposit Facility. • Currency & Forex • LKR Performance: The Rupee appreciated slightly, closing at Rs. 309.00/10 against the USD. • Trading Volume: Daily USD/LKR volume stood at US$ 78.30 Mn. Summary based on provisional market data from Wealth Trust Securities.
📉 CSE Slumps as 11-Day Bull Run Ends
The Colombo stock market began the week in negative territory, snapping an 11-day winning streak as indices retreated amid cautious sentiment and selling pressure. • Market Indices & Performance ASPI: Declined by 0.19% (45.79 points) to close at 23,608.51. S&P SL20: Ended flat with a marginal 0.01% dip to 6,502.45. Turnover: Recorded at Rs. 5.2 Bn, which is 14.7% above the monthly average of Rs. 4.5 Bn. • Sector & Stock Highlights Capital Goods: Top turnover contributor (24%), led by John Keells Holdings (Rs. 22.90) and Royal Ceramics (Rs. 50.00). The sector index fell 0.51%. Banking: Second highest contributor; sector index eased by 0.10%. Commercial Bank rose to Rs. 219.50, while HNB and SAMP faced declines. Food, Beverage & Tobacco: Combined with Banking to account for 31% of the daily turnover. • Investor Activity Foreign Participation: Remained subdued with a net outflow of Rs. 35.4 Mn. Participant Profiles: Retail activity was strong, while High Net Worth (HNW) and institutional interest were concentrated in select blue-chips like JKH and Royal Ceramics.
📈 CSE Poised for Growth in 2026 Amid Low Rates
The Colombo Stock Exchange (CSE) remains a lucrative investment avenue for 2026, supported by a low interest rate environment and improving corporate fundamentals, according to Softlogic Stockbrokers. Despite the $ 4.1 Bn impact of Cyclone Ditwah, the market continues to show resilience. • Market Performance (2025): • ASPI gained 41% YoY, with Market Cap crossing Rs. 8 Trillion (+41.67%). • Total market turnover surged by 129% to Rs. 1.23 Trillion. • S&P SL20 recorded a 26.6% increase. • Valuations remained attractive with a PER of 10.73x and PBV of 1.45x. • Sector & Corporate Earnings: • Total corporate earnings grew 16% to Rs. 512 Bn (first 9 months of 2025). • The Banking sector led the recovery, contributing 38% of total earnings. • Construction, Manufacturing, and Services sectors all showed robust momentum. • Macro-Economic Context: • Budget deficit contracted by over 73% following a 37% rise in tax revenue. • Inflation (CCPI) was contained at 2.1%, while the CBSL maintained the OPR at 7.75%. • Foreign investors were net sellers with an outflow of Rs. 38.6 Bn, though renewed inflows are anticipated in 2026. • Outlook: The economy is shifting toward cautious optimism. With reconstruction efforts underway and support from the IMF, World Bank, and ADB, mid-single-digit GDP growth is projected for 2026.
📉 CSE: First Market Decline of 2026 Recorded Today
The Colombo Stock Exchange (CSE) experienced its first downturn of the year today, January 12, snapping its positive streak for 2026. Both key indices closed in the red amid active trading volumes. • Overall Indices: The All Share Price Index (ASPI) fell by 45.79 points (0.19%) to close at 23,608.51 points. Similarly, the S&P SL20 Index, which tracks the largest and most liquid stocks, edged down by 0.57 points to end at 6,502.45. • Market Liquidity: Despite the price decline, market turnover remained healthy, totaling Rs. 5.21 billion for the session. • Context: This session marks the first instance of negative movement for the banking, finance, and diversified holdings sectors collectively reflected in the indices this calendar year. _Data based on daily CSE provisional figures._
Secondary Bond Market Yields Lower Amid High Auction Liquidity 📈
The Sri Lankan secondary bond market yields closed lower week-on-week, driven by robust buying interest in mid-to-long term maturities. While the short end saw intermittent profit-taking, the "belly of the curve" (2029–2030) remained stable or dropped, supported by healthy transaction volumes and block trades. • Overall Market Dynamics: Yields on 2029–2032 tenors generally eased. The 15.06.29 maturity dropped to 9.50% from week highs, while the 01.10.32 maturity traded down to 10.30%. The short end (2026) showed late-week recovery with the 15.12.26 maturity trading at 8.50%. • Treasury Auctions: - T-Bills: Last Wednesday’s auction was fully subscribed for the first time in 4 weeks, raising Rs. 100 Bn. Weighted averages rose for the 3rd consecutive week: 91-day (7.88%), 182-day (8.44%), and 364-day (8.47%). - Upcoming T-Bonds: A major auction is scheduled for today (12 Jan) offering Rs. 205 Bn across four maturities (2030, 2033, 2035, and 2039). • Liquidity & Forex: - Money Market: Net liquidity surplus rose to Rs. 171.03 Bn (up from Rs. 134.48 Bn). CBSL holdings of government securities remained flat at Rs. 2,508.92 Bn. - External Sector: Marginal net foreign inflow of Rs. 57 Mn into government securities. The Sri Lankan Rupee (LKR) appreciated slightly against the USD, closing at Rs. 309.00/30. • Sector Impact: The stable yields in the longer end reflect sustained investor confidence in government securities, providing a benchmark for corporate lending and supporting the broader financial services sector and infrastructure financing.
Secondary Bond Market Yields Decline Amid Surging Activity 📈
• Market Sentiment: The secondary bond market experienced a shift as aggressive buying interest drove yields lower across most maturities. Transaction volumes were high, bolstered by significant block deals. • Yield Movements: • 2027 maturity: Dropped from 9.00% to 8.95%. • 2029 maturities: Traded lower in the range of 9.70%–9.50%. • 2032 maturities: Yields softened to the 10.35%–10.30% range. • Upcoming Auction: The Central Bank announced a major Treasury Bond auction for January 12, seeking to raise Rs. 205.00 Bn across four maturities (2030, 2033, 2035, and 2039). • Monetary Liquidity: The system maintained a high net liquidity surplus of Rs. 168.45 Bn. Weighted average rates for call money and repo stood at 7.97% and 7.99% respectively. • Currency Performance: The Sri Lankan Rupee appreciated against the US Dollar, with spot contracts closing at Rs. 309.10/50 compared to the previous day’s Rs. 310.05/15. • Volume: Total secondary market transacted volume reached Rs. 76.86 Bn (as of Jan 7), while USD/LKR traded volume was US$ 68.50 Mn.
Lanka Securities Clarifies Role in CSE Trading Disruption 📉
Lanka Securities Ltd. has issued an official statement regarding the trading disruption at the Colombo Stock Exchange (CSE) on Wednesday, denying involvement in the incident. • Core Clarification: The firm stated it did not place any pre-open sell orders for Wealth Trust Securities PLC shares at the reported price of Rs. 25,000 per share. • Regulatory Status: As a licensed market intermediary, Lanka Securities emphasized its compliance with the Securities and Exchange Commission of Sri Lanka (SEC) and CSE surveillance rules. • Current Status: The incident is currently under review by regulatory authorities. Lanka Securities confirmed it is cooperating fully with the ongoing investigation. • Market Integrity: The company reaffirmed its commitment to professionalism and investor protection to maintain confidence in Sri Lanka's capital markets. _Note: Summary based on official company statements following media reports of the disruption._
📈 CSE Gains Rs. 89.4 Bn as ASPI Nears Record High
The Colombo stock market staged a strong recovery yesterday, adding Rs. 89.4 billion in value and bringing the ASPI within 133 points of its all-time peak. • Market Performance: The All Share Price Index (ASPI) rose by 1.00% (+233.28 points) to 23,527.13. The S&P SL 20 gained 1.48% (+94.18 points) to close at 6,458.03. • Trading Volume: Turnover reached Rs. 12.3 billion, a significant 219% increase over the monthly average. Approximately 223.7 million shares changed hands. • Sector Highlights: • Real Estate: Led the market, contributing 37% of total turnover. • Banking & Diversified Financials: Combined for 32% of turnover, driven by interest in HNB, SAMP, COMB, DFCC, and CFIN. • Investor Sentiment: Retail participation was strong, while high-net-worth (HNW) involvement remained moderate. Foreign investors recorded a net outflow of Rs. 1.7 billion. • Context: The surge follows a previous day of technical disruptions, with the ASPI now eyeing its 12 November 2025 record of 23,659.
📈 CSE Rebounds with Record Rs. 12.32 Bn Turnover
The Colombo Stock Exchange (CSE) staged a strong recovery today (Jan 08) following yesterday's market disruption, posting its highest turnover in recent history. • Market Performance: • The All Share Price Index (ASPI) surged by 233.28 points (+1.00%) to close at 23,527.13. • The S&P SL20 advanced by 100.01 points (+1.57%) to end at 6,463.86. • Total turnover reached a record Rs. 12.32 Bn. • Key Highlights: • Lee Hedges PLC dominated activity with a crossing valued at Rs. 3.93 Bn. • Wealth Trust Securities PLC debuted in the secondary market, recording a Rs. 1.16 Bn turnover. • Wealth Trust shares, originally priced at Rs. 7.00 in the IPO, traded between Rs. 14.90 and Rs. 19.80, closing at Rs. 18.90—a massive 166% gain for initial investors. • Market Context: • Trading resumed normally after the SEC and CSE cancelled all equity transactions from Jan 07 due to a technical anomaly where a share was traded at an irregular price of Rs. 25,000. Based on provisional market data.
📈 MBSL Midcap Index Revised for 2026
The Merchant Bank of Sri Lanka (MBSL) has announced the annual recalibration of the MBSL Midcap Index, effective from 1 January 2026. The index tracks 25 medium-sized companies on the Colombo Stock Exchange (CSE) based on market capitalization, liquidity, and profitability. • Market Capitalization Range: For 2026, the eligibility range has been adjusted to Rs. 8.45 Bn – Rs. 84.5 Bn (up from Rs. 4.9 Bn – Rs. 49.07 Bn in 2025), reflecting movements in the ASPI. • Sector Breakdown: The index now represents 9 GICS industry groups: • Banking: HNB (X), Seylan, Seylan (X), DFCC, and NDB. • Capital Goods: ACL Cables, Access Engineering, Sierra Cables, Royal Ceramics, and Aitken Spence. • Diversified Financials: Commercial Credit, Central Finance, Vallibel Finance, First Capital, and People’s Leasing. • Other Key Sectors: Includes Energy (LIOC), Materials (Chevron, Dipped Products, JAT), Food & Beverage (Sunshine Holdings, Lanka Milk Foods), and Real Estate. • Key Inclusions: New entrants for 2026 include Sierra Cables, Aitken Spence, Vallibel Finance, Lanka IOC, Janashakthi Insurance, JAT Holdings, and Prime Lands Residencies. • Notable Exclusions: Companies such as John Keells Holdings, TeeJay Lanka, and Watawala Plantations have been removed from the 2026 index. The revision aims to provide portfolio managers with signals for switching to stocks with high growth potential and moderate volatility.
LKR Weakens: USD/LKR Spot Rate Surpasses Rs. 310 📈
The Sri Lankan rupee (LKR) crossed a significant threshold today, January 7, 2026, marking its weakest level in nearly two years. • Overall Figures: The Central Bank of Sri Lanka (CBSL) recorded an Indicative Spot Rate of Rs. 310.02 per US Dollar, the first time the rate has exceeded Rs. 310 since late February 2024. • Market Rates: Commercial banks showed a widening spread with the buying rate at Rs. 306.28 and the selling rate at Rs. 313.81. • Historical Context: This movement follows a period of "ongoing pressures" in the foreign exchange market. The LKR depreciated by 5.6% against the USD throughout 2025. • Impact: The weakening currency reflects broader shifts in the external sector as the country manages a flexible exchange rate regime aimed at maintaining price stability while building foreign reserves. _Source: Central Bank of Sri Lanka (CBSL) - January 7, 2026._
📈 CSE Halts Trading & Cancels Deals Over Pricing Error
The Colombo Stock Exchange (CSE) took the rare step of halting the market and canceling all morning transactions today (07) following a significant pricing error during the debut of a newly listed company. • Market Impact: Trading was suspended at 9:53 a.m. after irregular transactions were detected in Wealth Trust Securities Limited (WTS). A massive "error trade" executed at Rs. 25,000—drastically higher than its IPO price of Rs. 7.00—distorted market turnover to a staggering Rs. 162 Bn. • Regulatory Action: In concurrence with the SEC, the CSE announced that all equity transactions conducted prior to the halt are cancelled. This was necessary as the inflated turnover artificially boosted investor buying power, threatening market order. • Sector Focus: Wealth Trust Securities, a primary dealer in the banking & finance sector, saw its IPO oversubscribed by 14.9 times last month. The company intended to list on the Diri Savi Board to strengthen its capital base for government securities trading. • Next Steps: All orders placed after 9:00 a.m. have been purged. Investors must re-enter their orders once the Order Management System (OMS) is cleared and trading resumes.
📈 Mixed Yields & High Liquidity Ahead of Rs. 100 Bn T-Bill Auction
The secondary bond market remained active with a flattening yield curve as investors balanced profit-taking on short-term tenors against stable demand for medium-to-long-term maturities. • Secondary Bond Market: Rates on the 2029-2030 "belly" of the curve initially dropped (9.71% - 9.80%), while short-term 2027-2028 maturities saw a sell-off, pushing yields up to 8.50% - 9.26% due to profit-taking. Daily transaction volume reached Rs. 14.71 Bn. • T-Bill Auction: The Central Bank has offered Rs. 100 Bn for today's auction (Jan 7), matching maturities of ~Rs. 97.73 Bn. This follows last week’s auction where weighted averages rose across all tenors (91-day: 7.74%, 182-day: 8.27%, 364-day: 8.45%) with a 47.83% subscription rate. • Money Market Liquidity: Net liquidity surplus rose for the fourth day to Rs. 175.21 Bn. Overnight call money and Repo rates stood at 8.00% and 8.03% respectively. • Currency Movement: The LKR saw slight depreciation, with the USD/LKR spot contract closing at Rs. 310.00/10 compared to the previous Rs. 309.95/05. Traded volume for Jan 5 was US$ 68.45 Mn.
📈 Mixed Yields & High Liquidity Ahead of Rs. 100 Bn T-Bill Auction
The secondary bond market remained active with a flattening yield curve as investors balanced profit-taking on short-term tenors against stable demand for medium-to-long-term maturities. • Secondary Bond Market: Rates on the 2029-2030 "belly" of the curve initially dropped (9.71% - 9.80%), while short-term 2027-2028 maturities saw a sell-off, pushing yields up to 8.50% - 9.26% due to profit-taking. Daily transaction volume reached Rs. 14.71 Bn. • T-Bill Auction: The Central Bank has offered Rs. 100 Bn for today's auction (Jan 7), matching maturities of ~Rs. 97.73 Bn. This follows last week’s auction where weighted averages rose across all tenors (91-day: 7.74%, 182-day: 8.27%, 364-day: 8.45%) with a 47.83% subscription rate. • Money Market Liquidity: Net liquidity surplus rose for the fourth day to Rs. 175.21 Bn. Overnight call money and Repo rates stood at 8.00% and 8.03% respectively. • Currency Movement: The LKR saw slight depreciation, with the USD/LKR spot contract closing at Rs. 310.00/10 compared to the previous Rs. 309.95/05. Traded volume for Jan 5 was US$ 68.45 Mn.
📈 CSE Market Momentum: 9th Consecutive Day of Gains
The Colombo stock market maintained its bullish streak yesterday, marking nine straight sessions of growth. Total market value generated in the first three trading days of 2026 reached Rs. 218.6 billion. • Key Indices: The ASPI rose by 1.21% (+278.16 points) to 23,292.91, while the S&P SL20 surged 2.19% (+136.41 points) to 6,363.85. • Turnover & Volume: Market turnover stood at nearly Rs. 6.6 billion with 154.7 million shares traded. Crossings accounted for 15.3% of the total turnover. • Sector Performance: The Banking sector was the primary driver, contributing 32% of turnover. Capital Goods and Food, Beverage & Tobacco (including Poultry) collectively accounted for 36%. • Top Contributors: Major gains were seen in HNB, COMB, JKH, NDB, and SAMP. Market breadth was positive with 138 gainers against 103 decliners. • Foreign Interest: Recorded a net outflow of nearly Rs. 8 million. COMB.N saw the highest net foreign buying (Rs. 84.4 million), while PKME.N led net foreign selling (Rs. 36.4 million). The market P/E ratio currently stands at 11.02, reflecting high activity from both retail and high-net-worth investors.
📈 Global Equity Rally & Oil Dip: Impact on SL Sentiment
Global markets extended gains this Tuesday, driven by AI-linked tech optimism and favorable US manufacturing data. Asian indices, including Hong Kong and Tokyo, surged as investors anticipated potential Fed rate cuts. Meanwhile, oil prices dipped as supply concerns in Venezuela eased, providing a potential relief for Sri Lanka’s energy import costs. • Stock Market Performance: The Colombo Stock Exchange (CSE) remains upbeat, with the ASPI rising 3.9% over the last week. The index closed at 23,292.91 (Jan 6), reflecting a robust 46.9% YoY growth. Financials and Renewable Energy sectors are leading the current rally. • Sector Growth & Exports: • Apparel & Textiles: Cumulative exports (Jan-Nov 2025) reached US$ 4.57 Bn, a 5.42% YoY increase. While November saw a slight 1.96% dip, the EU market grew by 13.07%, highlighting strong ethical manufacturing demand. • Tea: Production showed a modest recovery, with cumulative output up 2.82 Mnkg to 220.97 Mnkg. Low-grown tea rose 5.96%, though high-grown segments faced a 6.22% decline. • Economic Outlook: Based on provisional data, Sri Lanka’s 2026 budget deficit is projected to rise to 6.5% of GDP due to Rs. 500 Bn in Cyclone Ditwah recovery spending. Despite this, 2026 GDP growth is forecasted at 3.5%–5.0% as stability returns. • Currency & Inflation: The Sri Lankan Rupee recently depreciated below 310 per US$, while December inflation remained steady at 2.1%.
📈 Review of Sri Lanka’s Bond Market 2025
The Government Securities market in 2025 was defined by strong macroeconomic fundamentals and fiscal overperformance, despite intermittent volatility from global shocks and natural disasters. Yields generally trended lower, supported by a shift in the yield curve and robust investor appetite. • Fiscal Performance & Debt: • Revenue grew by Rs. 1.3 Tn (+35% YoY) due to tax reforms. • Primary surplus doubled to Rs. 1.94 Tn (+109% YoY). • Budget deficit narrowed sharply to Rs. 326 Bn from Rs. 1.22 Tn. • S&P upgraded foreign currency rating to CCC+ in September. • Monetary & Inflation Indicators: • CCPI inflation remained in deflation from January–July, ending the year well below the 5% target. • A single 25 bps policy rate cut in May brought the Overnight Policy Rate to 7.75%. • Market liquidity remained in surplus, exceeding Rs. 100 Bn for 80% of the year. • External Sector & Foreign Investment: • Foreign holdings in Rupee Treasuries surged 259% to Rs. 141.37 Bn. • Current account surplus reached US$ 1.68 Bn (Jan-Nov), aided by a 21% rise in remittances. • Gross International Reserves stood at US$ 6.00 Bn as of November. • Key Risks & Outlook: • Market sentiment was shaken by US 'Reciprocal Tariffs' (finalized at 20%) and the Iran-Israel conflict. • Year-end yields rose due to Cyclone Ditwah, resulting in a Rs. 500 Bn supplementary estimate for 2026 reconstruction, creating uncertainty for future rate trajectories.
📈 CSE Extends Winning Streak to Ninth Session
The Colombo Stock Exchange continued its robust upward momentum on Tuesday (06), with the blue-chip index reaching a six-week high. • Market Performance The benchmark All Share Price Index (ASPI) surged by 278.16 points (+1.21%) to close at 23,292.91. This marks the ninth consecutive day of gains for the bourse. • Sector & Index Highlights The liquid S&P SL20 Index outperformed the broader market, jumping 2.19% (136.41 points) to end at 6,363.85. Investor interest was heavily concentrated in the banking and capital goods sectors. • Top Contributors Key drivers for the day included Hatton National Bank (HNB), Commercial Bank, John Keells Holdings (JKH), National Development Bank (NDB), and Sampath Bank. • Turnover & Activity Daily market turnover reached Rs. 6.59 Bn, reflecting high investor engagement compared to the previous session's Rs. 5.7 Bn. Despite the rally, the market saw a net foreign outflow of Rs. 87 Mn. • Macro Context The market remains optimistic amid sectoral growth in diversified financials and construction, alongside recent adjustments in energy prices by Lanka IOC following state-led fuel price hikes. _Based on CSE daily market data._ Would you like me to provide a deeper breakdown of the top gaining stocks for this session?
📈 Sri Lanka Bond Market Yields Spike Amid Increased Activity
• Secondary Bond market yields saw a sharp increase yesterday, following the Treasury Bill auction where weighted average rates rose across all maturities. The 364-day tenor increased by a notable 16 basis points. • Market activity picked up significantly. Key bond maturities traded: • 15.09.27: 9.05%-9.06% • 15.02.28 & 15.03.28: Highs of 9.15% • 01.07.28: High of 9.20% • 15.10.28: 9.20%-9.23% • Longer tenors (e.g., 15.12.29) climbed to 9.85% from previous 9.65/75 levels, and 01.07.30 traded at a high of 9.95%. • 15.03.31: 10.15%; 01.11.33: 10.60%. • Total secondary market Treasury Bond/Bill volume for Dec 23 was Rs. 28.26 Bn. • An upcoming Treasury Bond auction on Dec 30 (settlement Jan 1, 2026) will offer Rs. 55 Bn across two maturities: • Rs. 30 Bn from 01.07.30 (9.75% coupon) • Rs. 25 Bn from 01.07.37 (10.75% coupon) • Money markets saw net liquidity surplus increase to Rs. 102.48 Bn. Overnight call money and Repo rates stood at 8.00% and 8.05% respectively. • In the Forex market, the USD/LKR spot contract closed depreciating slightly to 309.65/309.75. Total traded volume for Dec 23 was $64.60 Mn.
📈 CSE Marginally Up as JKH Crossings Dominate Turnover
The Colombo Stock Exchange closed Christmas Eve slightly positive, driven by significant block trades in John Keells Holdings (JKH). • Market Performance: • ASPI gained 0.15% (+32.05 pts) to 21,959.05. • S&P SL20 rose 0.07% (+4.17 pts) to 6,015.48. • Turnover exceeded Rs. 4.1 billion, with 147.2 million shares traded. • Investor Activity: • Foreign investors were net sellers with an outflow of Rs. 331.3 million. • JKH crossings accounted for 33.9% of overall turnover, drawing strong interest from HNW investors. • Crossings contributed 43.3% to total turnover. • Sector Contributions: • Capital Goods sector led with 53% of total turnover. • Diversified Financials and Banking sectors combined for 14%. • Market Sentiment: The market largely consolidated, trading within a narrow range despite occasional volatility spikes. Top positive contributors included SFCL, SPEN, SAMP, BUKI, and CARG.
📈 Gold Surges Past US$4,500/oz to Record High! 🚀
Precious metals are hitting all-time peaks driven by geopolitical tensions and US rate cut expectations. • Gold reached a record high of US$4,497.55/oz, with US futures at US$4,519.20/oz. • Year-to-date, gold has risen over 70%, acting as a safe-haven asset amidst US-Venezuela tensions and expected easing of US monetary policy. • Silver also soared to a record US$69.98/oz, with spot prices at US$69.56/oz. • Silver has outperformed gold, gaining over 141% since the start of the year, backed by supply shortages, high industrial demand, and investment inflows. • Platinum prices also advanced to all-time highs. • Analysts predict gold could target US$5,000/oz in the medium term, while silver's long-term target remains at US$75/oz, with active growth resuming after the holiday season.
📉 CSE ends volatile week in red, loses Rs. 70 Bn
The Colombo Stock Exchange (CSE) closed a volatile week with significant losses amid sustained selling pressure and low participation. • Weekly Performance: • ASPI fell 1.59% (359.17 points) to 22,149.09. • S&P SL20 dropped 0.67% (41.12 points) to 6,056.54. • Market value decreased by Rs. 70 billion this week, totaling Rs. 271 billion since 21st November 2025. • Daily Figures (19 Dec.): • ASPI down 0.64% (143.48 points). • S&P SL20 down 0.16% (9.89 points). • Turnover: Over Rs. 3.45 billion with 75.1 million shares traded. • Foreign Investor Activity: Net sellers with an outflow of Rs. 49.6 million for the day and Rs. 42.6 million according to another figure in the news content. • Sector Contributions to Turnover: • Capital Goods: 31%. • Materials and Food, Beverage & Tobacco: Combined 22%. • Top Negative ASPI Contributors: DOCK, MELS, HHL, JKH, and NDB. Subdued participation from HNW and retail investors continued throughout the week.
📈 CSE Opens Week in Red After Rally; Loses Rs. 53 Bn
The Colombo Stock Exchange (CSE) started the week on a negative note, ending a five-session rally and losing Rs. 52.9 billion in market value. • The ASPI declined by 0.95% (213.49 points) to close at 22,294.77. • The S&P SL20 also dropped by 0.74% (45.36 points) to 6,052.30. • Market turnover was modest at less than Rs. 2.23 billion, with nearly 81.3 million shares traded. • Foreign investors were net buyers, recording a net inflow of Rs. 88 million. • Top negative contributors to the ASPI included DOCK, CINS, COMB, CFIN, and DFCC. • The Capital Goods sector led turnover, accounting for 35%, while Food, Beverage and Tobacco and Diversified Financials contributed a combined 31%. • The Construction sector saw a pull-back, contrasting its performance from the previous week. • First Capital Research noted a subdued start to the week, with the ASPI drifting down after early trading hours.
Colombo Stock Market Surges, ASPI Crosses 22,000! 📈
The Colombo Stock Market saw a robust performance today (Dec 09, 2025): The All Share Price Index (ASPI) surged by 439.46 points (2.04%) to close at 22,034.32, once again breaching the 22,000 mark. The S&P SL20 also advanced, gaining 77.47 points (1.31%) to end the session at 6,004.11. Market turnover for the day reached Rs. 3.88 billion.
📈 CSE Weekly Review: Rs. 424 Bn Value Wiped Out
• Colombo Stock Exchange closed the week in the red, with indices hitting a two-and-a-half-month low. • Overall Figures (Week-on-Week): • ASPI fell by 5.35% (1,215.74 points). • S&P SL20 fell by 5.45% (341.4 points). • Total market value loss for the week was nearly Rs. 424 Bn. • Yesterday's Activity: • Daily turnover neared Rs. 3.97 Bn. • Foreign investors were net buyers with an inflow of nearly Rs. 72 Mn. • Sector Breakdown: • Capital Goods was the top turnover contributor (27.4% of daily turnover), with the sector index losing 1.30% (e.g., JKH, Hemas Holdings). • Banking was the second contributor; the sector index decreased by 1.88% (Key counters: HNB, COMB, SAMP). • Banking and Diversified Financials together accounted for 36.7% of the day's turnover. • Weak sentiment prevailed, with 202 counters closing lower, driving the index further into negative territory.
📈 SL Equities Now a 'Top Pick' for Foreign Frontier Fund: Stability & Undervaluation Key
AFC Asia Frontier Fund (AFC AFF) Co-Fund Manager Ruchir Desai has given an upbeat assessment, stating Sri Lanka is one of the Fund's top country picks, entering its most promising phase in a decade. • Core Drivers: The recovery is built on political and macroeconomic stability, which are critical prerequisites for sustained investor interest. • Fund Allocation: AFC AFF increased exposure soon after November 2022 (the 'crisis bottom') and Sri Lanka is now the Fund's second-largest country allocation. • Valuations: Equities remain significantly undervalued vs. fundamentals and regional peers. The broader market trades at ~11x earnings (P/E), below the 14-16x P/E seen pre-2018. • Sector Strength: Company fundamentals have returned to pre-crisis strength, showing robust earnings growth across banking, consumer, and industrial sectors. Private banks are benefitting directly from improved credit growth. • Valuation Gap: E.g., a leading SL bank trades at ~1x book value, while a comparable regional bank trades at nearly 2.5x, despite SL banks showing stronger earnings momentum. • Structural Strengths: Highlighting strong corporate governance, transparency, and a resilient pool of well-run companies. Untapped sectors include logistics and tourism. • Foreign Flows: Although currently low, foreign interest is expected to return by 2026 or 2027 if stability persists. Desai stressed that the platform is set for stable growth, but the country must "not to drop the ball" by maintaining reforms. 🤞
📈 Secondary Bond Market Active, LKR Appreciates Slightly
• Secondary Bonds: Market activity was active with healthy transaction volumes, boosted by several block transactions. Yields were broadly steady across the curve. • Renewed buying interest led to a marginal drop in yields for 2028 tenors (e.g., 15.02.28 traded at 9.20%). • Selected longer tenors (2031 & 2033) edged up marginally (e.g., 01.11.33 traded up to 10.62%). • Total secondary Treasury Bond/Bill volume for 2 Dec was Rs. 6.60 Bn. • Money Market (Liquidity): Net liquidity surplus was recorded at Rs. 102.75 Bn on Wednesday. • Rs. 106.92 Bn was deposited at the SDFR (7.25%), while Rs. 4.17 Bn was withdrawn from the SLFR (8.25%). • Overnight call money and Repo weighted average rates stood at 7.94% and 7.96%, respectively. • Forex Market: The USD/LKR spot rate appreciated slightly, closing the day at Rs. 308.75/308.80 (vs. previous close of Rs. 308.80/308.90). • Total USD/LKR traded volume for 2 Dec 2025 was US$ 45.60 Mn.
📈 CSE Plummets to Two-Month Low Amid Weather Uncertainty
• The Colombo Stock Market (CSE) recorded a sharp decline yesterday, losing a total of Rs. 143 Billion in value from its previous close. • The ASPI fell 1.87% (414.98 points) to 21,826.59, while the active S&P SL20 dropped 1.75%. • Daily turnover was nearly Rs. 3.78 Bn. • The sharp slide was primarily attributed to uncertainty surrounding adverse weather forecasts warning of persistent heavy rainfall. • Sector Focus & Contribution: • Capital Goods was the top contributor, generating 38.6% of the day’s turnover (counters included John Keells Holdings, Access Engineering). The sector index lost 1.51%. • Banking was the second largest contributor, with the sector index decreasing by 1.72% (driven by Hatton National Bank). • Investor Activity: • Foreign investors remained Net Sellers, posting an outflow of Rs. 295.5 Mn. • Overall investor activity, including retail and High Net Worth (HNW) participation, was noted as muted.
Sri Lanka Business Confidence Index (BCI) Plunges in November 📉
• The LMD-PEPPERCUBE Business Confidence Index (BCI) tumbled by 23 basis points in November, dropping to 189 from its record high of 212 in October. • The drop is attributed to a wave of uncertainty and apprehension among the business community, largely due to pre-budget caution and the lack of major reforms in Budget 2026. • Sentiment shifted towards greater caution regarding long-term economic and sales prospects, though overall optimism persists. • Context: The BCI at 189 remains 64 points above its historic median (125) and significantly higher than 154 recorded in November last year. • Economic Projections: The World Bank forecasts moderate economic growth of 4.6% in 2025 and 3.5% in 2026, but notes the rebound is incomplete, with output below pre-crisis levels. • Outlook: The recent confidence resurgence appears unsustainable; the BCI is expected to fluctuate significantly ("seesaw") over the next 6-12 months. Sustaining confidence requires implementing targeted policies.
📈 Colombo Stock Market Recoups Post-Cyclone Dip
• The market bounced back, capturing 30% of the Rs. 240 Billion value wiped off on Monday following the Ditwah cyclone. Market capitalisation gained Rs. 72 Billion yesterday. • The benchmark ASPI rose by 1% (219 points), and the active S\&P SL20 gained 0.85%, partially reversing Monday's plunges. • Turnover was Rs. 4 Billion, which is 20% below the monthly average of Rs. 5 Billion. Retail investors primarily drove bargain-hunting opportunities. • Sector Contribution to Turnover: • Capital Goods led with 29% (index +0.95%). • Banking and Materials sectors combined for 36.3%. • The Materials sector index saw the highest gain at +1.31%. • Foreign investors remained net sellers, posting a net outflow of Rs. 197.6 Million. High net worth interest was noted in Tokyo Cement NV, Dipped Products, and Melstacorp.
T-Bill Rates Anchor for 20th Week; Secondary Bonds Rise & Rupee Depreciates 📈
• Treasury Bill Auction: Weighted average rates held broadly steady for the 20th straight week. • Key Rates: 182-day was 7.91% and 364-day was 8.03% (both unchanged). The 91-day tenor saw a marginal 1 basis point drop to 7.51%. • Under-Subscription: The auction was heavily undersubscribed for the 5th consecutive week, raising only Rs 15.843 Bn (33.01%) out of Rs 48.00 Bn offered. • Secondary Bond Market: Activity and yields increased, reportedly reacting to the aftermath of Cyclone Ditwah. Maturities traded higher, e.g., 15.10.29 at 9.60% and 01.11.33 up to 10.55%. • Transaction Volume: Total secondary market Bond/Bill transacted volume for the day was Rs 1.073 Bn. • Forex Market: The Rupee depreciated further. The USD/LKR spot closed at 308.80/308.90, compared to 308.55/308.65 the previous day. Total traded volume was US$ 41.55 Mn. • Money Market: Net liquidity surplus recorded at Rs 97.03 Bn. Overnight Call Money and Repo rates stood at 7.94% and 7.97% respectively.
CSE Drops Steeply Post-Cyclone Ditwah 📉
The Colombo Stock Market began December and the new week with a steep decline, driven by panic selling following the recent adverse weather conditions. • Indices Performance: • ASPI: Fell sharply by 3.04% (690.76 pts) to close at 22,022.06. • S&P SL20: Lost 2.89% (181.16 pts). • Key Figures: • Turnover: Over Rs. 5.2 Billion. • Foreign Flow: Net sellers, recording an outflow exceeding Rs. 106.2 Million. • Sector & Industry Highlights: • Capital Goods was the top contributor to turnover (29.1%), despite the sector index losing 1.72%. • Banking was the second highest contributor, with the sector index decreasing by 3.56%. • A notable trend was increased investor interest in Construction counters, anticipating future rebuilding activity following flood-related damage.
📉 Secondary Bond Market Moderates; LKR Depreciates
• Secondary Bond market activity remained moderate as participants adopted a cautious stance following Cyclone Ditwah. Yields saw an upward edge on the short end of the curve. • Key T-Bond trades included 15.02.28 and 15.03.28 maturities at 9.20%, and the 15.03.31 maturity at 10.00%. • Total secondary T-Bond/Bill transacted volume for 28 November was Rs. 2.95 Bn. • Money Market: Net liquidity surplus decreased to Rs. 86.32 Bn. • Rs. 102.85 Bn was deposited at the SDFR (7.25%), while Rs. 16.53 Bn was withdrawn from the SLFR (8.25%). • Forex Market: The USD/LKR spot rate depreciated to close the day at Rs. 308.55/308.65, up from Rs. 308.05/308.20 the prior day. • Total USD/LKR traded volume on 28 November was $49.85 Mn.
📈 Global Gold Reserves Soar to US$ 4.83 Trillion Amid Central Bank Buying
• The combined value of global gold reserves reached approximately US$ 4.83 t as of November 19, 2025, reflecting renewed central bank interest in the precious metal as a safe haven. • This represents a significant 44.66% increase in reserve value since December 2024, when gold traded at $2,609.10 per ounce. • Top Accumulators (2025 YTD): • Poland is the largest buyer YTD, adding 67.1 tons to its reserves (Value surged 66.57% vs 2024). • Kazakhstan is the second-largest accumulator, with net purchases of approximately 40.4 tons. • China continued its steady accumulation, adding 1.2 tons in September and 0.9 tons in October, bringing its total net acquisitions for 2025 to ~35.5 tons. • The United States maintains the world's largest reserve at 8,133 tons (valued at US$ 1.08 t), while China holds the sixth-largest total reserve (2,303.5 tons). • Outlook: Central bank buying is expected to sustain elevated gold prices into 2026, driven by currency diversification strategies and responses to evolving US monetary policy.
📈 Primary Bond Auctions Surprise with Lower Yields!
• Yesterday's Treasury Bond auctions produced remarkable outcomes, registering weighted averages below the prevailing secondary market yields. • The 01.03.2030 maturity closed at a weighted average of 9.53% (vs. 9.60%-9.64% previous close). • The 01.06.2033 maturity recorded 10.39% (vs. 10.45%-10.50% previous close). • Secondary Bond market activity moderated post-auction. • Total secondary market T-Bond/Bill transacted volume for Nov 26 was Rs. 28.60 Bn. • Money market recorded a net liquidity surplus of Rs. 92.26 Bn. • Rs. 109.99 Bn was deposited at the SDFR (7.25%), while Rs. 17.73 Bn was withdrawn from the SLFR (8.25%). • Overnight Call/Repo weighted average rates stood at 7.94% and 7.96% respectively. • In the Forex market, the Rupee remained broadly steady. • USD/LKR spot contracts closed at Rs. 308.05/308.15. • Total USD/LKR traded volume for Nov 26 was US$ 107.20 Mn.
📉 Colombo Stock Market: One-Month Low Amid Near Five-Month Low Turnover
• The Colombo Stock Exchange (CSE) indices fell sharply on weak investor interest, with the ASPI closing at its second lowest point since 28 October. • ASPI: Down 0.80% (-182.14 pts) to 22,662.09. • S&P SL20: Down 0.68% (-42.85 pts). Market Activity & Finance: • Turnover hit a near five-month low (lowest since 7 July 2025) at just over Rs. 2.34 Billion. • Turnover was 57.5% below the monthly average. • Foreign investors were net sellers, recording an outflow of Rs. 103.46 Million. Sector & Stock Contributions: • Negative market contribution was primarily driven by major Banking counters (SAMP, COMB, HNB). • Capital Goods was the top contributor to turnover at 31%, led by Hemas Holdings and AccessEngineering, with the sector index falling 0.81%. • Diversified Financials and Banking sectors collectively contributed 26% to the day's turnover. • High Net Worth and Institutional interest was noted in Hemas Holdings, Diesel & Motor Engineering, and LOLC Holdings.
CSE Indices Continue Upward Trend for Second Straight Session 📈
• The Colombo Stock Exchange closed in the green for the second straight session, with retail and HNW investors showing moderate sentiment after the Monetary Policy Review maintained policy rates. • ASPI gained 0.11% (24.32 points) to 22,844.23. • The active S&P SL20 was up 0.20% (12.55 points) to 6,311.30. • Market Turnover was over Rs. 3.4 million on nearly 157.31 million shares traded, which is 38% below the monthly average of Rs. 5.6 Billion. • Foreign Investors were net sellers with a net outflow of Rs. 124.56 million. • Sector Focus: The Capital Goods sector accounted for 27% of turnover, while Materials and Banking contributed a combined 29%. • Notably, investors showed heightened interest in counters within the Hotel sector throughout the session. • Key market movers included HNB, DOCK, DIMO, AEL, and PKME.
📈 CBSL Holds Policy Rate Steady at 7.75%; T-Bill Rates Anchor for 19 Weeks
• Monetary Policy Review (6th/2025): Central Bank held the Overnight Policy Rate (OPR) unchanged at 7.75% for the third consecutive time. SDFR and SLFR remain at 7.25% and 8.25%, respectively, aimed at steering inflation toward the 5% target. • Treasury Bill Auction: Weighted Average Rates (WAYRs) were unchanged across all tenors for the 19th straight week: 91-day at 7.52%, 182-day at 7.91%, and 364-day at 8.03%. • The auction was undersubscribed for the 4th consecutive time, raising only Rs. 55.637 Bn (64.32% of Rs. 86.50 Bn offered). • Economic Context: • Private sector credit shows a "notable and broad-based expansion." • Rising imports widened the trade deficit, but strong inflows from tourism and workers' remittances cushioned the external current account. • Gross Official Reserves maintained above US$ 6 Bn thus far in 2025. • Market & Forex: • Secondary Bond market yields edged up following the policy announcement, mainly on the short end of the curve. • The Rupee marginally depreciated: USD/LKR (Spot) closed at 308.00/308.10.
📈 CSE Rebounds After Three-Day Decline on HNW Buying
• The Colombo Stock Exchange (CSE) ended its three-day losing streak, closing on the up yesterday driven primarily by bullish high net worth investor participation. • Overall Market: The ASPI rose by 0.77% (gaining 174.03 points) to close at 22,819.91, and the S&P SL20 gained 0.30% to 6,298.75. • Turnover & Activity: Market turnover was strong at over Rs. 4 Bn on nearly 110 million shares traded. • Foreign Activity: Foreign investors were net sellers, recording a net outflow of over Rs. 213.2 Mn. • Sector Drivers: The Banking sector dominated activity, accounting for 31% of total turnover, with the sector index gaining 0.60%. Capital Goods and Diversified Financials collectively contributed 33%. • Key Stocks: High net worth interest was noted in Hatton National Bank (HNB), John Keells Holdings (JKH), and DFCC Bank. HNB and DFCC Bank were the top drivers of the Banking sector turnover.
SL Secondary Bond Mkt: Slow Start Ahead of Key Events 📉
• Bond Market Activity: Secondary bond market began the week slowly as participants adopted a "wait and see" stance ahead of the final Monetary Policy Announcement and back-to-back T-Bill/Bond Auctions. • Yields consolidated and traded sideways, though transaction volumes were healthy (Rs. 3.56 Bn on Nov 14) due to several block trades. • Key Yields: Maturities traded included: 01.06.26 (8.20%), 15.03.28 (9.02%), 01.07.30 (9.60%-9.61%), and 15.06.35 (10.69%-10.70%). • Money Market Liquidity: Net surplus recorded at Rs. 58.50 Bn. • Rs. 79.20 Bn was deposited at the Central Bank's SDFR (7.25%), while Rs. 20.70 Bn was withdrawn from the SLFR (8.25%). • Weighted Average Rates: Call money was registered at 7.94% and Repo at 7.96%. • Forex Market: USD/LKR spot contracts closed steady at Rs. 307.80/307.90, compared to the previous day's close. • Total USD/LKR traded volume on Nov 21 was $75.43 Mn.
📉 CSE Slumps to Five-Week Low Amid Selling Pressure
• The Colombo Stock Market extended its slump into a third session, registering a sharp decline to close at a five-week low. • The ASPI dropped 1.47% (337.84 pts) to close at 22,644.88, while the active S&P SL20 lost 1.33%. • Total market turnover was over Rs. 4.95 billion on over 145.8 million shares traded. • Despite the broad market decline, foreign investors were net buyers, recording an inflow of over Rs. 83.2 million. • The market breadth was strongly negative, with 239 price decliners compared to only 28 gainers. • The Capital Goods sector was the top turnover contributor (accounting for 33%), led by Hemas Holdings and Colombo Dockyard, but its sector index lost 1.40%. • The Banking sector was the second-highest contributor and saw its index decrease by 1.62%. • Selling pressure dragged the index down, with counters like Hatton National Bank (HNB), National Development Bank (NDB), and John Keells Holdings (JKH) being the top negative contributors.
📉 CSE Ends Week Below 23,000 Points Amid Weekly Decline
• Daily Market Close: The benchmark ASPI fell sharply by 0.53% (122.24 pts) to 22,982.72, closing below the 23,000 threshold for the first time in nearly two weeks. The S&P SL20 also declined by 0.28%. • Turnover & Foreign Activity: Total turnover was over Rs. 3.8 billion. Foreigners were net sellers, resulting in a net outflow of Rs. 163.8 million for the day. • Weekly Performance: Both indices recorded significant losses for the week: the ASPI was down 2.03% (477.03 pts), and the S&P SL20 lost 1.1%. The total net foreign outflow for the week was Rs. 461.8 million. • Sector/Stock Highlights: • The Food, Beverage and Tobacco sector was the top turnover contributor, primarily due to Hatton Plantations and Renuka Agri Foods, though the sector index lost 0.92%. • Price losses were noted in counters like Hatton National Bank, Bukit Darah, and Ambeon Holdings. • High net worth interest was seen in Hatton Plantations, Dialog Axiata, and People’s Leasing and Finance.
🚨 CSE Market Snapshot (21/11/2025): Data Unavailable
• No market summary can be provided as the content of the "CSE PRICE LIST-21/11/2025" is empty. • Key indicators (e.g., ASPI/S&P SL20 movements, Total Turnover, or cross-sector performance) cannot be reported. • Provisional data on banking, tourism, or manufacturing sector activity is currently missing.
CSE Valuations Hit New High, But 2026 Growth Expected to Moderate 📉
• The Colombo Stock Exchange (CSE) market PE is now trading significantly above its 18-year historical average (12.0x), marking a rare valuation premium (FCR). • YTD 2025 Market Performance: • ASPI gained nearly 45%. • S&P SL20 was up 31.3%. • Market Capitalisation increased 45.3% to nearly Rs. 8.28 t. • 2025 Key Drivers & Earnings: • Strong economic performance, lower lending rates, and faster construction growth pushed valuations higher. • GDP growth is estimated at ~5%. • Corporate earnings are estimated to have risen by 25%. • 2026 Outlook & Pressures: • Growth is expected to moderate as a weaker rupee raises import costs and consumption slows. • Projected GDP growth: Easing to 3–4% (from ~5% in 2025). • Corporate earnings growth: Expected to normalise to about 17%. • Sectors like construction, tourism, and diversified exporters remain well-positioned despite the softer outlook.
📈 Bond Market Consolidates Amid Positive Restructuring & Tax News
• Secondary Bond Market: Yields consolidated for the third consecutive session within a narrow band. Concentrated demand caused rates on selected tenors, notably the 01.07.30 maturity (trading 9.62%-9.58%), to dip lower. • Key Activity: Total Treasury Bond/Bill transacted volume for the day was Rs. 19.97 Billion, reflecting healthy market activity. • Key Maturities: Noted trades include 01.06.26 at 8.15%, 15.10.27 at 8.50%, the 2028 tenors around 9.01%-9.08%, and 15.12.32 at 10.25%. • Market Boosters: Sentiment was supported by two factors: SriLankan Airlines reached an agreement in principle on the financial parameters for its bond restructuring. The Inland Revenue Department recorded its highest-ever tax revenue collection for the year 2025. • Money Market: Net Liquidity Surplus stood at Rs. 102.60 Bn (SDFR deposits: Rs. 104.44 Bn). Overnight call money/Repo rates were 7.93% and 7.96% respectively. • Forex: The USD/LKR spot contract closed marginally stronger for the LKR at Rs. 308.10/308.30. Total traded volume was US$ 122.95 Mn.
📈 CSE Breaks 5-Day Slump on Bargain Buying
• The Colombo Stock Exchange closed in the green, recovering from a five-session decline on heightened buying interest. • Benchmark ASPI gained 0.33% (75.10 pts) to close at 23,104.96. • Active S&P SL20 also rose 0.32% (20.60 pts) to 6,382.18. • Total turnover reached Rs. 3.49 Billion. • Foreign Investors remained net sellers, registering an outflow of Rs. 40.9 Million. • Market activity was supported by persistent bargain buying, though retail participation was muted. • Top Turnover Sectors: • Capital Goods led with 24% of total turnover, mainly due to John Keells Holdings (JKH). • Banking and Food, Beverage & Tobacco sectors collectively contributed 39%. • High Net Worth (HNW) and institutional interest were noted in counters like Commercial Bank (CMB), JKH, and Melstacorp. • Key positive contributors to the index included SAMP, RICH, BUKI, JKH, and CARS.
📈 T-Bill Rates Hold Steady; Rupee Appreciates Marginally
• T-Bill Auction • Weighted Average Rates (WAYRs) remained broadly steady for the 18th week. • 91-day and 182-day tenors: Unchanged at 7.52% and 7.91%. • 364-day tenor: Marginal 01 basis point decrease to 8.03%. • Auction was undersubscribed for the 3rd consecutive week, raising Rs. 63.12 Bn (73.40% of the Rs. 86 Bn offered). • Secondary Market • Secondary Bond market yields continued to consolidate, trading within a narrow band. • Key maturities traded: 15.09.29 at 9.47% and 01.11.33 between 10.45%-10.48%. • Total T-Bond/Bill transaction volume for 18 Nov: Rs. 6.47 Bn. • Money Market & Liquidity • Overnight Call/Repo rates stood at 7.93% and 7.96%. • Net liquidity surplus: Rs. 95.62 Bn (Rs. 96.86 Bn deposited at SDFR 7.25%). • Forex • USD/LKR rate on spot contracts closed marginally appreciating to Rs. 308.10/308.50. • Total USD/LKR traded volume: US$ 50.48 Mn.
📉 CSE Marginally Down Amidst Volatile Session
• The benchmark ASPI closed 0.09% lower (losing 21.80 points) at 23,029.86, and the active S&P SL20 index ended 0.23% down, driven by sharp selling pressure in early trading. • Total turnover exceeded Rs. 3.8 Billion on nearly 125.41 million shares traded. • Foreign investors remained net sellers, recording a net outflow of Rs. 4.7 Million. • Sector Activity Breakdown: • The Materials sector led market turnover, contributing 26% of the total. • The Capital Goods and Banking sectors collectively accounted for 38% of turnover. • Major negative contributors to the index decline included COMB, DIAL, DOCK, DFCC, and NDB. • Investor interest was notably high on JFP during its first day of trading. HNW and institutional activity was observed in CIC Holdings, Vallibel One, and Hemas Holdings.
Global Crypto Update: Bitcoin Rebounds from 7-Month Low 📉
• Bitcoin briefly dipped below the $90,000 mark, hitting a 7-month low of $89,286.75, before finding buyers and trading up nearly 1.9% at $93,532. • The risk-sensitive asset is now 26% below its October peak (above $126,000), losing all year's gains. • Market Impact: Approximately US$ 1.2 Trillion has been wiped off the total crypto market value in the past six weeks. • Key Drivers: The sharp decline is attributed to doubts over future U.S. interest rate cuts, a broad risk-averse mood, and significant institutional/listed company exits. • ETF Outflows: U.S. spot Bitcoin ETFs have seen major outflows totaling US$ 3.7 Bn since Oct 10, with $2.3 Bn exiting in November alone. • Corporate Impact: Standard Chartered estimates a drop below $90,000 could leave half of listed companies' Bitcoin holdings "underwater." The biggest corporate holder, Strategy, acquired 8,178 BTC on Monday. • Altcoins: Ether has also faced pressure, losing nearly 40% of its value from its August peak.
CSE Weekly Wrap: Closes Flat After Early Dip 📈
• Colombo Stock Exchange (CSE) indices closed marginally lower yesterday, recovering from a sharp early fall. The ASPI was down 0.01% (to 23,459.75) and the S\&P SL20 lost 0.34%. • Daily Market Turnover exceeded Rs. 5.6 Bn. • Foreign investors were net sellers with an outflow of over Rs. 5.9 Mn. Weekly Snapshot: • Indices posted gains for the week: ASPI up 0.5% and S\&P SL20 up 0.9%. • Average daily turnover for the week was a stronger Rs. 7 Bn. Sector & Activity Highlights: • The Banking sector was the top turnover contributor (25% of total), led by Hatton National Bank (HNB/HNB.NV), though the sector index lost 0.61%. • Capital Goods (driven by Hemas Holdings) and Food, Beverage, and Tobacco were also key contributors, with these three sectors accounting for 59% of total turnover. • High Net Worth and institutional interest was noted in Hemas Holdings and HNB/HNB.NV. • Retail interest was seen in SMB Leasing, Waskaduwa Beach Resort, and Hela Apparel Holdings.
CSE Market Snapshot (14/11/2025) 📉
• Note: Market performance data (indices, turnover, volumes) for the Colombo Stock Exchange (CSE) on November 14, 2025, is currently unavailable in the provided report. • Key figures and sector breakdowns cannot be summarized without the corresponding price list and trading statistics.
Wall St. Tumbles Amid AI Sell-off & Fed Jitters 📉
• Wall Street posted its steepest daily percentage decline in over a month, driven by a broad sell-off and investors scaling back expectations for a Federal Reserve (Fed) rate cut in December. • Index Performance: • S&P 500 fell 1.66% to 6,737.49. • Nasdaq dropped 2.29% to 22,870.36. • Dow Jones declined 1.65% to 47,457.22. • Key Drivers/Sectors: • Losses were led by Consumer Discretionary (-2.73%) and Information Technology (-2.37%). • AI heavyweights like Nvidia (-3.6%), Tesla (-6.6%), and Broadcom (-4.3%) saw steep declines amid fears over high valuations. • Monetary Policy Outlook: Financial market odds for a 25-basis-point Fed rate cut in December dropped significantly to ~47% (down from 70% last week), as Fed officials express continued caution over inflation and labor market stability.
📈 CSE Rally Ends: Profit Taking Drives Market Down
The Colombo Stock Exchange (CSE) closed in the red yesterday as investors engaged in profit booking following the recent post-Budget rally. • Index Performance: • ASPI dropped 0.84% (-198.24 points) to close at 23,461.46. • S&P SL20 fell 1.52% (-99.45 points) to finish at 6,458.15. • Activity & Flow: • Total market turnover was over Rs. 6.4 Billion. • Foreign investors were net sellers, recording a net outflow of over Rs. 788.7 Million. • Sector Focus: • The downturn was primarily driven by the Banking sector, which dominated market activity, accounting for 39% of total turnover. • The Materials and Capital Goods sectors jointly contributed 29% to the turnover. • Laggards: • Key negative contributors to the index included SAMP, HNB, JKH, NDB, and BUKI, reflecting broad-based decline across blue-chips. • Market breadth was negative, with 159 decliners versus 81 price gainers.
📈 SL Treasury Bond Auction Fully Subscribed After 7 Weeks!
• The weekly Treasury Bond auction was fully subscribed yesterday, marking the first time in seven weeks the market absorbed the entire offered amount. • A total of Rs. 80 Bn was offered across two maturities. • Demand was very strong, drawing bids amounting to 2.73 times the offered volume. • This strong appetite reflects the recent bullish tone and rallying yields seen in the secondary Bond market. • Weighted average rates at the auction confirmed this firm market sentiment, marking a clear shift from previous auctions.
SL Treasury Rates Hold Steady as Auction Undersubscribed 📉
• Treasury Bill Rates remained broadly anchored for the 17th consecutive week. • Key Rates: 91-day held at 7.52%; 364-day held at 8.04%. The 182-day tenor saw a marginal increase of 01 basis point to 7.91%. • Auction Performance: The T-Bill auction was undersubscribed for the second consecutive time, raising only Rs 43.31 Bn (56.25%) out of the Rs 77.00 Bn offered. • Secondary Bond Market: Yields edged up marginally, with the 15.01.27 maturity trading between 8.15%-8.16% and the 15.03.31 at 9.80%-9.82%. • Upcoming Focus: A major Rs 80 Bn Treasury Bond auction is scheduled for today (Nov 13), following a previous auction (Oct 13) that raised 86.23% (Rs 162.11 Bn) of its offered amount. • Money & Forex: A net liquidity surplus of Rs 146.61 Bn was recorded. The USD/LKR rate on spot contracts closed depreciating marginally to Rs 304.60/304.65. FX traded volume for Nov 11 was US$ 101.75 Mn.
📈 CSE Extends Post-Budget Rally to Third Session
• The Colombo Stock Exchange (CSE) continued its positive momentum, extending the post-Budget rally for a third consecutive session on renewed interest in banking stocks. • Overall Figures: • Benchmark ASPI closed 0.33% higher (up 77.54 pts to 23,659.70). • S&P SL20 gained 0.44% (up 29 pts to 6,557.60). • Turnover was strong, exceeding Rs. 7.23 Bn on nearly 191 million shares traded. • Market Drivers: • Investor interest focused on low and mid-tier Banking counters, supported by continued strong High Net Worth (HNW) interest. • Key positive contributors included RICH, JKH, SFCL, VONE, and SPEN. • Sector Activity: • The Capital Goods sector led market activity, accounting for 26% of total turnover. • Banking and Retailing sectors jointly contributed 31% of the total turnover. • Foreign Activity: • Foreign investors were net sellers during the session, posting an overall net outflow of Rs. 57.7 million.
📈 CSE extends post-Budget rally; Turnover hits Rs. 8.2 Bn
• Colombo Stock Exchange (CSE) extended its post-Budget rally for a second session, driven by robust retail and High-Net-Worth (HNW) investor activity. • The benchmark ASPI set a new high, closing up 0.34% (79.57 pts) at 23,582.16. The active S&P SL20 also gained 0.44%. • Market turnover surged past Rs. 8.2 Billion, an increase of 21% against the monthly average (Rs. 6.8 Bn). • Foreign investors were net buyers, recording a net inflow of Rs. 26 Million. • Sector dominance in turnover: • Capital Goods accounted for 28% of the total. • Banking and Food, Beverage and Tobacco sectors collectively contributed 35%. • Key positive contributors to the ASPI included RICH, DIAL, DFCC, AEL, and HNB.
Bond Market Consolidates Ahead of Rs. 77 Bn T-Bill Auction 📈
• Secondary Bond Market yields generally consolidated at lower levels from the recent rally, with trading largely sideways but activity remaining healthy. • Key trades included the 01.05.27 maturity at 8.50% and the 15.05.30 maturity at 9.55%. • Total secondary market turnover for Nov 10 was Rs. 13.01 Bn. • T-Bill Auction Today: A total of Rs. 77 Bn is on offer, structured as: • 91-day: Rs. 10 Bn • 182-day: Rs. 30 Bn • 364-day: Rs. 37 Bn • The offered amount is significantly below the estimated maturing volume of ~Rs. 104.28 Bn. • Last Week's T-Bills: Weighted average rates remained unchanged for the 16th consecutive week (91-day: 7.52%, 364-day: 8.04%), though the auction was undersubscribed (raised 86.40%). • Money Market: Net liquidity surplus was recorded at Rs. 145.28 Bn, deposited at the Central Bank’s SDFR (7.25%). Call/Repo rates were 7.93% / 7.96%. • Forex Market: The USD/LKR rate on spot contracts closed with a marginal depreciation to Rs. 304.20/304.35. Traded volume for Nov 10 was $ 79.70 Mn.
CSE Jumps Past 23,500 Mark Post-Budget 2026 📈
• The Colombo Stock Exchange (CSE) benchmark ASPI crossed the 23,500 point milestone for the first time, driven by positive sentiment following the 2026 Budget speech. The index closed up 0.70% (+164.34 pts) at 23,502.59. • The active S&P SL20 also saw significant gains, rising 1.86% to 6,500.04. • Market turnover was strong, exceeding Rs. 7.5 Billion on nearly 253 million shares traded. Foreign investors were net sellers, recording an outflow of Rs. 434.1 Million. • The Banking sector was the primary driver of the index gains, with HNB, SAMP, COMB, NDB, and DIAL being key contributors. • Sector activity was led by the Capital Goods sector (25% of turnover), followed by the Banking and Food, Beverage, and Tobacco sectors (34% combined). • The Budget proposals are expected to benefit banks by generating loan demand, especially through support for SMEs. Key allocations include: • An Rs. 25 Billion allocation for concessional interest rate loans (up to Rs. 25 Mn for successful businesses). • Credit guarantees of Rs. 7 Billion for SME loans, supported by a US$ 50 Million facility from the Asian Development Bank (ADB). • A new SME Development Loan Scheme with Rs. 7.7 Billion earmarked for fresh loans up to Rs. 50 Mn.
Secondary Bond Market Yields Dip; Rupee Appreciates 📈
• Secondary Bond Market continued its rally with strong buying interest, pushing yields lower, particularly in the 2028-2033 tenors. • Key Yields (sample): 01.05.27 at 8.56%; 15.02.28 at 8.90%; 01.11.33 traded down to 10.49%. • Total transaction volume on 7 Nov was Rs. 16.12 Bn. Market sentiment was supported by the ADB's approval of a US$ 100 Mn financing package. • T-Bond Auction Focus: The upcoming auction on 13 November will offer a total of Rs. 80 Bn. • Auction Breakdown: Rs. 35 Bn (1 July 2030 @ 9.75% coupon) and Rs. 45 Bn (15 June 2035 @ 10.70% coupon). • Money Market: Net liquidity surplus was recorded at Rs. 142.49 Bn. • Rs. 142.89 Bn was deposited at the CBSL's SDFR (7.25%). • Forex Market: The Rupee appreciated on spot contracts. • Closed at Rs. 304.15/304.20 compared to Rs. 304.80/304.90 the day prior.
Colombo Stock Exchange ASPI Crosses 23,500 Mark! 📈
• Historic Milestone: The All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) surpassed the 23,500-point level for the first time ever during today's (Nov 10) trading session. • Setting a new all-time high, the index was recorded at 23,511.84 points upon crossing the mark.
📈 SL Bond Market Bullish on Favorable 2026 Budget Outlook
The secondary Government securities market saw a second consecutive week of bullish momentum, driven by strong demand and positive sentiment following the 2026 Budget reading. • Bond Market Trends: Robust activity and transaction volumes pushed yields sharply lower, causing a downward shift in the yield curve, particularly across 2026–2030 maturities. • Example: The 01.07.28 maturity yield declined from an intra-week high of 9.17% to a low of 9.00%. • Daily secondary market transacted volumes averaged Rs. 13.99 Bn for the first three days. • Foreign holdings of rupee-denominated securities remained static at Rs. 141.32 Bn. • Budget 2026 Projections (Key Drivers): The bullish sentiment was supported by Budget statements outlining continued macro-fiscal discipline and key targets for 2026: • Economic growth projected at 4%-5%. • Primary Budget Balance of 2.5% of GDP. • Budget Deficit maintained at 5.1% of GDP. • Government revenue expected to exceed 15.4% of GDP. • Additional positive development: Expectation of national carrier debt restructuring by December. • Money & Forex Markets: • Inter-bank liquidity surplus reduced to Rs. 118.29 Bn (from Rs. 155.05 Bn the previous week). • USD/LKR spot rate depreciated, closing the week at Rs. 304.80/304.90 (vs. Rs. 304.35/304.45 prior week). • Daily average USD/LKR traded volume stood at US$ 119.7 Mn (first four trading days).
CSE Bull-Run Sustained by 2026 Budget Optimism 📈
• Colombo Stock Exchange indices maintained a positive momentum, driven by investor optimism following the national Budget presentation. • Key Indices Performance: • Yesterday: ASPI gained 0.98% (+225 points); S&P SL20 rose 1.13%. • Weekly: ASPI gained 2.3%; S&P SL20 gained 2.7%. • Turnover & Activity: • Daily turnover was Rs. 6.7 billion, surpassing the weekly average of Rs. 5.73 billion. • Banking sector led market activity, accounting for 23% of total turnover, with the sector index gaining 1.56%. • Capital Goods and Food, Beverage and Tobacco sectors collectively contributed 32% of turnover. • Key Stocks and Contributors: • High net worth and institutional interest was noted in DFCC Bank, Sampath Bank, and Sunshine Holdings. • Top index contributors included SFCL, COMB, SAMP, HNB, and VONE. • Foreign Activity: • Foreigners were net sellers, recording a net outflow of Rs. 91.5 million. • Net foreign buying topped in JKH, while selling was highest in PLC.
Secondary Bond Yields Drop Further on Strong Buying & Easing Drivers 📉
• Market Trend: Secondary Bond market yields saw a further decline yesterday, driven by strong buying interest and robust transaction volumes, including block trades. • Key Drivers: Bullish momentum is attributed to fiscal over-performance, US Fed monetary policy easing, increased foreign investment in LKR bonds, and continual undersupply at T-Bill auctions. • Yields Snapshot: • 2026 Maturities traded around 8.05% (01.08.26) and 8.10% (15.12.26). • The 2029 Tenors saw aggressive buying interest, with yields dropping to ranges like 9.48% (15.12.29). • Longer maturities (e.g., 01.07.32) traded lower at 10.51%. • Market Volume: Total secondary market T-Bond/Bill transactions amounted to Rs. 18.80 Bn (for 4 Oct 2025). • Money Markets: Net liquidity surplus stood at Rs. 125.92 Bn. Call money and repo weighted average rates were 7.91% and 7.96% respectively. • Forex: The USD/LKR rate on spot contracts appreciated slightly, closing at Rs. 304.85/304.95. Total traded volume for 4 Nov 2025 was US$ 160.80 Mn.
CSE Hits Record High: ASPI Closes Above 23,000 📈
• Benchmark Performance: The All Share Price Index (ASPI) closed at a new all-time high of 23,112.38, gaining 0.69% (158.99 points). • The active S&P SL20 also saw a strong gain of 0.98%, closing at 6,310.26. • Market Activity: Total turnover was robust at over Rs. 6 billion, on more than 187 million shares traded. • Participation was driven by strong retail activity, alongside moderate High Net Worth (HNW) involvement. • Sector Focus: The Capital Goods sector led turnover, contributing 28% of the total. • Banking and Food, Beverage & Tobacco sectors were also highly active, jointly accounting for another 28%. • Foreign Flows: Foreign investors were net sellers, recording a net inflow of Rs. 38.1 million for the session. • Key positive index contributors included SFCL, NDB, DOCK, JKH, and CTHR.
Mixed Performance for Tea National Sales Average (NSA) in October 📈
• Overall October NSA: The National Sales Average for tea in October was Rs. 1,177.14 per kilo (US$ 3.87/kg). • Monthly Trend: This reflected a Month-on-Month (MoM) decline of Rs. 14.48 ($0.07) compared to the September average. • Yearly Trend: Despite the MoM drop, the October NSA saw a Year-on-Year (YoY) increase of Rs. 4.99 ($0.12) against October 2024. • Year-to-Date (YTD): Cumulative NSA (Jan-Oct 2025) remains negative YoY at Rs. 1,161.99 ($3.87), a decline of Rs. 74.93 ($0.21) from the corresponding period in 2024. • Regional Breakdown (October): Low Grown average recorded the steepest MoM decrease (Rs. 19.66, $0.09). Medium Grown average saw a marginal positive LKR variance MoM (Rs. 3.43). Cumulatively (Jan-Oct), all regions recorded negative YoY variances in both LKR and USD terms. • Export Context: Separate data highlights that tea export earnings for the first nine months (Jan-Sept) increased by 9.8% to US$ 1.16 Bn. September earnings alone rose by 17% to US$ 137 million.
📈 T-Bill Rates Anchor for 16th Week; Auction Undersubscribed
• Treasury Bill Rates Hold Steady: Weighted Average Rates (WAYRs) remained unchanged for the 16th consecutive week. • 91-day: 7.52% • 182-day: 7.90% • 364-day: 8.04% • Undersubscribed Auction: The weekly T-Bill auction raised only Rs. 66.96 Bn, covering 86.40% of the Rs. 77.5 Bn offered amount. • Secondary Bond Market: Yields consolidated at prevailing lower rates, cementing levels established post-market rally. • Healthy trading sentiment, with Nov 3 total transacted volume at Rs. 10.6 Bn. • Key Maturities: 15.05.26 traded around 8.04%-8.05%; 15.06.29 traded around 9.49%-9.50%. • Money Market Liquidity: Net surplus recorded at Rs. 133.17 Bn. • Overnight call money at 7.90% and Repo at 7.96%. • Rs. 150.02 Bn placed at SDFR (7.25%) versus Rs. 16.84 Bn withdrawn from SLFR (8.25%). • Forex Market: USD/LKR spot contracts depreciated, closing at Rs. 304.65/304.80 (previous close: Rs. 304.45/304.55). • Total traded volume for Nov 3 was $ 115.30 Mn.
📈 CSE ASPI Briefly Hits All-Time High of 23,000 Points
• The All Share Price Index (ASPI) briefly crossed an all-time high of 23,000 points during early trading before dipping due to profit taking. • ASPI closed up marginally by 0.11% (+25.18 points) at 22,953.49. The S&P SL20 index closed slightly lower by 0.05%. • Total market Turnover exceeded Rs. 4.4 Billion on over 161.7 million shares traded. • Foreign investors were net sellers with a net outflow of more than Rs. 485.4 Million. • Capital Goods was the top contributor to turnover (28%), with activity noted in Aitken Spence and Colombo Dockyard. The sector index gained 0.37%. • The Food, Beverage, & Tobacco and Banking sectors were the next highest contributors, collectively accounting for 34% of turnover, featuring stocks like Sunshine Holdings and Commercial Bank. • High Net Worth and Institutional interest was seen in Aitken Spence, Dipped Products, and Commercial Bank.
🇱🇰 CSE Milestone! ASPI Crosses 23,000 for the First Time 📈
• The All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) achieved a historic first during the morning trading session today (November 4th). • The index surpassed the 23,000-point mark for the first time ever. • ASPI reached 23,000.54 points at approximately 09.37 a.m.
CSE Opens November Strong Amid HNW Activity 📈
Colombo stock market opened the month on an upswing, driven by high net worth (HNW) and institutional participation: • The All Share Price Index (ASPI) closed up 0.54%, gaining 123.47 points to 22,928.31. The active S&P SL20 also rose by 0.62%. • Total turnover exceeded Rs. 5.7 Billion on a volume of over 158.1 Million shares traded. • Foreign investors were net sellers, recording an outflow of Rs. 645.4 Million. • The Capital Goods sector was the top contributor to turnover, accounting for 27% and seeing its sector index rise by 0.91%. Activity was centered on Aitken Spence and Sierra Cables. • The Transportation sector was the second-highest contributor (combined 27% with Materials), with its index gaining 0.97%, driven by Digital Mobility Solutions Lanka. • HNW participation was noted in Digital Mobility Solutions Lanka, Aitken Spence, and Jetwing Symphony Limited, with John Keells Holdings (JKH) among the key positive index contributors. Trading activity was slightly cautious ahead of the upcoming national budget.
Strong Rally: Foreign Inflows Fuel Secondary Bond Market Yield Decline 📈
• The secondary Bond market kicked off the week on a bullish note, extending the rally and seeing yields decline across the curve, driven by strong buying interest focused on 2026-2030 tenors. • Market sentiment was significantly supported by a major inflow into Sri Lankan rupee Government securities. Foreign holdings rose by Rs. 10.36 Bn last week (ending Oct 30), marking the largest inflow in 32 weeks. • Total foreign holdings have now reached Rs. 141.32 Bn, a two-year high and a 259% surge from September 2024 lows. • Key yields closed lower: 15.12.26 traded at 8.10%; 01.07.30 traded between 9.72%-9.75%; and 15.09.34 traded at 10.70%. • Today's T-Bill auction offers Rs. 57 Bn against an estimated maturity of Rs. 106.40 Bn, marking the second consecutive week of undersupply. • In the Forex market, the Rupee depreciated marginally, closing at Rs. 304.45/304.55 per USD. Net money market liquidity stood at a surplus of Rs. 105.18 Bn.
📈 Foreign Investor Confidence Surges: Rupee Treasuries Hit 2-Year High!
• Foreign holdings in Rupee Government Securities recorded a massive net inflow of Rs. 10.36 Bn for the week ending Oct 31, marking the largest weekly inflow in 32 weeks. • Total foreign holdings now stand at Rs. 141.32 Bn, the highest level in two years (since Mid-Nov 2023). This represents a 259% increase from the low recorded in Sep 2024. • The Secondary Bond Market saw a pronounced shift to bullish sentiment and robust activity, leading to a week-on-week downward movement in the yield curve. • Key drivers: The US Fed's monetary policy easing and Sri Lanka's strong fiscal performance. • Fiscal Review (Jan-Sep 2025) highlights: Budget deficit narrowed by 54.5% and a robust Primary Surplus of Rs. 1.46 Tn (well above IMF targets). • Inflation (CCPI Oct YoY) accelerated to +2.1% (from +1.5% in Sept) but remains moderate and below the CBSL's medium-term target range. • Money market liquidity surplus increased 20.10% to Rs. 155.05 Bn. • The LKR depreciated marginally, with the USD/LKR spot closing the week at Rs. 304.35/304.45 (vs. 303.70/303.85 prior week).
CSE Week Ends in Red Amid Foreign Selling 📉
• The Colombo Stock Exchange (CSE) ended the week down following a three-day rally. • The ASPI declined 0.15% (to 22,804.84), while the active S&P SL20 closed in the green, up 0.18%. • Turnover was Rs. 5.6 Bn, which is 26% below the monthly average of Rs. 7.5 Bn. Foreign Activity & Weekly Close: • Foreign selling was substantial, leading to a net outflow of Rs. 893 Mn yesterday. • Foreigners were net sellers for the entire week, resulting in a net outflow of nearly Rs. 2 Bn. • Week-on-Week, the ASPI declined marginally by 0.03%, and the S&P SL20 fell 0.83%. Sector Performance & Activity: • Market activity was led by the Capital Goods sector, which contributed 29% of total turnover and saw its sector index gain 0.56%. • The Materials and Diversified Financials sectors accounted for a combined 23% of turnover. • Strong High Net Worth (HNW) activity was observed, primarily driven by large-scale crossings in SPEN (Aitken Spence) and LGL (Laugfs Gas).
Local Bond Market Buoyant Amidst US Fed Rate Cut 📈
• Secondary Bond Market sentiment remained strong, with robust buying interest absorbing initial selling, buoyed by the US Federal Reserve cutting its policy rate by 25 basis points (bps) to a range of 3.75%-4.00%. • Foreign Holdings Rebound: Foreign investment in Government Securities reached Rs. 130.96 Bn (a nearly two-year high), reflecting a 233% increase from the low recorded in September 2024. • Bond Yields consolidated at new levels: Key maturities traded included 15.02.28 at 9.07%, 15.10.30 at 9.80%, and 01.11.33 at 10.60%. Total market transacted volume was Rs. 29.35 Bn (Oct 29). • Money Market: The net liquidity surplus was recorded at Rs. 153.72 Bn. An amount of Rs. 154.52 Bn was deposited at the SDFR (7.25%). Weighted average call money and repo rates were 7.89% and 7.92% respectively. • Forex: The USD/LKR rate on spot contracts appreciated slightly, closing at Rs. 304.35/304.45. Total traded volume was $ 108.30 Mn.
CSE Closes Up Driven by HNW Activity & Strong Turnover 📈
• The Colombo Stock Exchange (CSE) ASPI index ended the day 0.27% higher, gaining 62.41 points to close at 22,839.53, sustaining the previous session's recovery. The S&P SL20, however, declined 0.13%. • Market Turnover was strong at Rs. 7.78 Bn, marking a 6% increase above the monthly average of Rs. 7.4 Bn. • Activity was largely dominated by High Net Worth (HNW) investors, supported by large-scale crossings (ATL, JKH, DOCK), while retail participation remained subdued. • Foreign investors recorded a notable net outflow of Rs. 857 million. Market breadth was positive with 135 gainers and 106 decliners. • The Capital Goods sector led activity, accounting for 27% of total turnover, followed by the Insurance and Retailing sectors (collectively contributing 28%). • Key positive movers included Colombo Dockyard (DOCK: up Rs. 38.50), Amana Takaful, and Digital Mobility Solutions Lanka. Investor interest was also noted in Ceylon Tea Brokers. Weakness across some blue-chips weighed on the SL20 index.
Senthilverl Exits Amana Takaful in Rs. 1 Bn Deal 📈
• Senthilverl Holdings Ltd. has fully exited Takaful Insurance firm Amana Takaful PLC, selling its remaining stake for Rs. 1 billion. • The transaction drove significant market activity, with a total of 51.5 million Amana Takaful shares trading for an overall turnover of Rs. 1.4 billion. • The major portion of the trade involved 40 million shares executed via 20 crossings at a price of Rs. 27 per share. • Amana Takaful's share price closed at Rs. 29, recording a 7.4% gain following the news.
📈 Nvidia Hits Historic US$ 5.03 Tn Valuation Amid AI Frenzy
• Global tech giant Nvidia made history this week, becoming the first company to reach a $5.03 trillion market capitalization, powered by the global Artificial Intelligence (AI) boom. • Meteoric Rise: This valuation was achieved just three months after the company breached the $4 trillion mark and now surpasses the total cryptocurrency market value. • Performance & Dominance: Nvidia’s shares have climbed 12-fold since the 2022 launch of ChatGPT, cementing its place as the backbone of the global AI industry. • New Orders: CEO Jensen Huang recently announced a massive $500 Bn in new AI chip orders and plans to build seven supercomputers for the U.S. government. • Global Context: The company's advanced chips, such as Blackwell, are a focal point in the tech rivalry between the U.S. and China due to Washington's export controls. Continued high-level investment in AI globally is critical for the expansion of the ICT/BPM sector.
Secondary Bond Market Rally Continues; T-Bill Auction Fully Subscribed 📈
• Secondary Bond market maintained its bullish momentum for a second consecutive session, spurred by news of Sri Lanka outperforming key fiscal metrics against IMF benchmarks for Q1-Q3 2025. • Strong demand led to considerable yield drops across the curve; longer tenor maturities (e.g., 2032) saw yields decline by approximately 10 basis points (bps). Total secondary market turnover was Rs. 15.60 Bn. • The weekly T-Bill auction was fully subscribed (Rs. 57 Bn raised), the first time in four weeks, with a bid/offer ratio of 2.21x. • Weighted Average Yields (WAYRs) held largely steady: 91-day unchanged at 7.52%. Marginal increases on 182-day (+1bp to 7.90%) and 364-day (+2bps to 8.04%). • Money Market: Net liquidity surplus stood at Rs. 154.84 Bn. Overnight call and Repo rates were 7.89% and 7.93%, respectively. • Forex Market: The Rupee depreciated further, with the spot rate closing at Rs. 304.40/304.55 (vs. Rs. 304.10/304.25 previous day). Traded volume was US$ 112.56 Mn.
📈 CSE Rebounds, Turnover Crosses Rs. 5.38 Bn.
• The Colombo Stock Exchange rebounded, with the ASPI gaining 0.39% (+87.90 points) to 22,777.12, and the S&P SL20 up 0.12%. • Total Turnover reached Rs. 5.38 billion, though this was about 28% lower than the monthly average. • Foreign Investors remained net sellers, recording a net outflow of Rs. 372.5 million. • Sector Dominance: Capital Goods was the top turnover contributor (20%), followed by the Utilities and Banking sectors (combined 25%). • Key Mover: The Utilities sector index surged 9.88%, driven by Windforce Ltd (+17.59%). Investor interest followed news of the company being the lowest-cost bidder for the Mullikulam wind project (Lot-1). • High net worth/Institutional interest was noted in Sampath Bank, John Keells Holdings, and Ceylon Land & Equity, while retail participation remained robust.
📉 CSE Logs 3rd Straight Session Loss Amid Selling Pressure
• Market Snapshot: Both key indices fell for a third consecutive day due to selling pressure, despite a partial recovery late in the session. • ASPI: Down 0.44% (99.57 pts) to 22,689.22. • S&P SL20: Down 0.84% (52.54 pts) to 6,203.09. • Turnover: Total turnover was Rs. 6.19 Bn, below the monthly average of Rs. 7.4 Bn, on over 211.8 million shares traded. • Foreign Activity: Foreign investors were net sellers, recording a net outflow of Rs. 42.48 Mn. • Sector & Stock Highlights: • The Capital Goods sector led market turnover (33%), driven by Colombo Dockyard (DOCK) and John Keells Holdings (JKH). • Food, Beverage & Tobacco and Banking sectors were the next highest contributors (jointly 21%). • Notable Gains: Colombo Dockyard (+21.60%), Lanka Realty Investments (+24.29%), and C M Holdings (+16.82%). • Key index negative contributors included JKH, Senkadagala Finance, and Sampath Bank. • Retail participation remained robust.
📉 CSE Indices Slip as Week Opens; Rs. 5.8 Bn Turnover
• Colombo Stock Exchange indices fell for the second consecutive session: ASPI was down 0.10% (22,788.79) and the active S&P SL20 fell 0.17%. • Market Turnover was robust at approximately Rs. 5.8 Billion. Over 306.8 million shares were traded. • Foreign Investors were Net Buyers, registering a net inflow of Rs. 176.5 million, despite subdued participation levels. • Capital Goods was the top contributor to turnover (driven by Colombo Dockyard & John Keells Holdings), followed by the Banking sector (DFCC Bank). Both sector indices edged down 0.01%. • Significant Price Gainers among top contributors: Healthcare stock Ceylon Hospitals soared +25.64% and Colombo Dockyard (DOCK) surged +24.20%. Ambeon Capital also appreciated by 3.56%. • The indices decline was primarily due to price losses in counters like C T Holdings, Central Finance Company, and Richard Pieris & Company. • Market breadth was negative, with 102 price gainers against 147 decliners. High net worth participation was noted in Ceylon Hospitals, John Keells Holdings, and DFCC Bank.
Secondary Bond Market Steady; Rupee Depreciates 📈
• The secondary Bond market kicked off the week on a steady, consolidating note with moderate overall activity. • Key Yields: Yields held broadly steady, with notable trades including the 01.06.26 maturity at 8.25%, 01.05.28 at 9.25%, and the long-dated 01.07.32 at 10.80%. • Total Treasury Bond/Bill transacted volume for October 24 was Rs. 11.73 Bn. • Money Market: Net liquidity surplus was recorded at Rs. 135.06 Bn. A total of Rs. 140.43 Bn was deposited at the Central Bank’s SDFR (7.25%). Weighted average rates were 7.89% for call money and 7.92% for repo. • Forex: The Rupee depreciated marginally, with the USD/LKR rate on spot contracts closing at Rs. 304.10/304.25 (vs. Rs. 303.70/303.85 the prior day). • Total USD/LKR traded volume for October 24 reached US$ 117.30 Mn.
📈 Foreign Holdings in Govt. Securities Surge to Highest Since Late 2023
• Foreign investment in Government securities (Treasury Bills and Bonds) has reached Rs. 130.96 Billion (Bn) as of 23 October. • This marks the highest level of foreign holdings recorded since 16 November 2023, indicating sustained overseas exposure to rupee-denominated debt. • Weekly Activity: Foreign investors were net purchasers during the week ending 23 October, recording an inflow of Rs. 606 Million (Mn). • Cumulative Inflows: Since 26 December 2024, the total cumulative inflows into Government Bills and Bonds have amounted to Rs. 61.7 Bn.
CSE Closes Marginally Up Amidst Rs. 9.2 Bn High Turnover 📈
• Market Indices: The All Share Price Index (ASPI) gained 0.26% (59.88 pts) to close at 22,850.95. However, the active S&P SL20 recorded a marginal loss of 0.13%. • Activity & Turnover: Market turnover was notably high at Rs. 9.2 Billion, approximately 24% above the monthly average, driven by strong High Net Worth (HNW) and institutional interest. • Foreign Flow: Foreign investors were net buyers, recording a net inflow of Rs. 13.8 Million. Net foreign buying topped in Hayleys PLC (HAYL) at Rs. 32.2 Mn. • Sector Performance: The Banking sector was the top contributor to turnover (22%), though its sector index lost 0.26%. The Capital Goods sector index gained 0.25%, with Colombo Dockyard appreciating 7.15%. • Key Movers: Investor sentiment was influenced by corporate announcements, including Hayleys PLC's entry into the supermarket industry (HAYL gained 3.0%). Bairaha Farms PLC surged 19.0% following a share subdivision announcement.
📈 Global Tech News: Samsung Shares Hit All-Time High
• Shares of South Korean memory chip giant Samsung Electronics surged as much as 2% on Thursday, hitting a record high on investor optimism surrounding the semiconductor industry. • The stock reached an all-time high of 96,900 won, surpassing the previous record of 96,800 won set in January 2021. • The company's stock has recorded an impressive Year-to-Date (YTD) increase of 80%. • Current trading value is approximately 95,900 won (US$ 67.52).
📈 CSE Market Cap Crosses Rs. 8 Trillion Mark Amid Real Returns Surge
• New Benchmark: The Colombo Stock Exchange (CSE) market capitalisation exceeded the Rs. 8 Trillion level for the first time, driven by a 40.48% gain Year-to-Date (YTD). • Exceptional Real Returns: The CBSL reports that the inflation-adjusted equity market delivered an average real return of 65.1% up to August 2025, compared to 24.8% in 2024. • Trading Activity: Average daily turnover saw a significant jump, climbing to Rs. 4.84 billion in the first eight months of 2025—more than double the Rs. 2.24 billion recorded in 2024. • Upside Potential: The Price-to-Earnings (PE) ratio stands at 9.81, which the CBSL notes is still below the long-term average of 12.13, indicating room for further growth. • Key Drivers: Strong performance is attributed to continued disinflation, robust dividend pay outs, and improved macroeconomic stability.