📈 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.