š 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.