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Indices Continue their Funk as ASPI Gives Up Another 0.60%...The All-Share Price Index (ASPI) fell for the fourth consec...
29/09/2026

Indices Continue their Funk as ASPI Gives Up Another 0.60%...

The All-Share Price Index (ASPI) fell for the fourth consecutive session, giving up 0.60% to close at 20,817.82. Meanwhile, the more liquid S&P SL20 Index fell 0.41% to settle at 5,896.40. Today’s decline extended the ASPI’s YTD loss to 7.98%, while the S&P SL20 Index is 4.24% down on the year.

It is difficult to pinpoint at one specific thing for the recent poor performance in the Colombo stocks although the war in Iran and the elevated oil prices are now distant causes of concern for the investors which cannot affect the value of the stocks here in a considerable way.

Market breadth leaned strongly negative, with only 30 gainers against 155 decliners. Dialog Axiata PLC (DIAL.N), Commercial Bank of Ceylon (COMB.N) and Overseas Realty (Ceylon) PLC (OSEA.N) were the leading contributors to the ASPI’s downward movement.

Market turnover stood at LKR 1.01Bn, significantly below the YTD daily average of LKR 3.70Bn but doubled the lowest turnover recorded yesterday for the year. Trading activity was led by John Keells Holdings PLC (JKH.N), York Arcade Holdings PLC (YORK.N) and Softlogic Capital PLC (SCAP.N). Sector - wise, Capital Goods, Real Estate and Diversified Financials counters dominated trading activity.‎

Market Declines with Lowest Turnover of 2026...The All-Share Price Index (ASPI) declined throughout the trading session ...
28/09/2026

Market Declines with Lowest Turnover of 2026...

The All-Share Price Index (ASPI) declined throughout the trading session to end 0.44% lower and close at 20,943.79, dropping for the third consecutive day. Meanwhile, the more liquid S&P SL20 Index gave up 0.34% to settle at 5,920.72. Today’s decline extended the ASPI’s YTD loss to 7.43%, while the S&P SL20 Index is down 3.84% down on the year.

Market breadth leaned strongly negative, with only 53 gainers against 133 decliners. Carson Cumberbatch PLC (CARS.N), Dialog Axiata PLC (DIAL.N) and SMB Finance PLC (SEMB.N) were the leading contributors to the ASPI’s downward movement.

Market turnover set a record low for the year at only LKR 595.97Mn. It is also significantly below the YTD daily average of LKR 3.72Bn. Trading activity was led by John Keells Holdings PLC (JKH.N), Citizens Development Business Finance PLC (CDB.N) and Haycarb PLC (HAYC.N). Sector - wise, Diversified Financials, Capital Goods and Materials counters dominated trading activity.‎

ASPI Extends Losing Streak to Three Consecutive WeeksThe All-Share Price Index (ASPI) declined 0.09% during the week to ...
26/09/2026

ASPI Extends Losing Streak to Three Consecutive Weeks

The All-Share Price Index (ASPI) declined 0.09% during the week to close at 21,037.35, marking the third consecutive week of losses. Meanwhile, the S&P SL20 gained 0.20% to close at 5,940.72.

Weekly turnover remained subdued at LKR 5.46Bn, representing a decline of around 32.33% from the previous week’s LKR 8.07Bn. Further slowdown in activity reflected lackluster investor participation, with daily turnover remaining relatively low during the week.

Foreign investors continued to be net sellers, recording a net outflow of LKR 401.32Mn, with foreign purchases totaling LKR 126.39Mn against sales of LKR 527.71Mn. With this week’s net outflows, foreigners have in total off-loaded stocks worth of LKR 57.26Bn so far this year.

Technical Outlook - 25.09.2026The ASPI continues to trade under pressure following the reversal from the previous peak a...
25/09/2026

Technical Outlook - 25.09.2026
The ASPI continues to trade under pressure following the reversal from the previous peak around 21,640 and the formation of a potential double-top structure. The index remains below the 21,209 resistance and the 50-day EMA, while the SELL signal from the Parabolic SAR, RSI below the neutral 50 level and negative MACD continue to indicate weak short-term momentum.

The index is currently trading within the established 20,921–21,080 support range. This zone remains the key area to watch, as a sustained hold could provide room for consolidation or a technical rebound. On the upside, 21,209 remains the immediate resistance, followed by the 21,288 double-top neckline. A sustained move above 21,288 would improve the short-term technical outlook, while a further move above the 50-day EMA at 21,384.3 would provide stronger confirmation of a recovery.

Market Ends Lower with Fourth - Lowest Turnover of 2026...The All-Share Price Index (ASPI) declined marginally by 0.14% ...
25/09/2026

Market Ends Lower with Fourth - Lowest Turnover of 2026...

The All-Share Price Index (ASPI) declined marginally by 0.14% to close at 21,037.35. Meanwhile, the more liquid S&P SL20 Index edged down 0.03% to settle at 5,940.72. Today’s decline extended the ASPI’s YTD loss to 7.01%, while the S&P SL20 Index is down 3.52% down on the year.

Market breadth leaned negative, with 88 gainers against 104 decliners. Dialog Axiata PLC (DIAL.N), Commercial Bank of Ceylon PLC (COMB.N) and Ceylon Cold Stores PLC (CCS.N) were the leading contributors to the ASPI’s downward movement.

Market turnover was notably low at LKR 814.88Mn, recording the fourth lowest turnover so far this year. It is also significantly below the YTD daily average of LKR 3.74Bn. Trading activity was led by National Development Bank PLC (NDB.N), People's Leasing & Finance PLC (PLC.N) and Dipped Products PLC (DIPD.N). Sector- wise, Banking, Diversified Financials and Material counters dominated trading activity.

Investors appear to be on the sidelines, observing the geopolitical developments as Brent crude oil prices still remain elevated.‎

How Sri Lanka’s Sovereign Rating Upgrade Could Lift Prospects for EquitiesLink Between Credit Rating & Rates Sri Lanka’s...
25/09/2026

How Sri Lanka’s Sovereign Rating Upgrade Could Lift Prospects for Equities

Link Between Credit Rating & Rates
Sri Lanka’s sovereign rating and interest rates/yields are mostly co-related during the most acute period of economic distress during 2021/22 when the rating was cut to ‘Restricted Default’ by Fitch Ratings when the 10-Yr bond yield soared to 30%. Outside such periods though, you are unable to find a direct co-relation between the two as the interest rates/yields are mostly tied to the inflation. For instance, when the sovereign rating was cut to CCC from B- in 2020, the interest rates held at rock bottom levels. However, higher and better credit rating is often associated with lower rates which is positive for equities.

Why today’s B- Rating is Better than 2020’s B-
B- at the time was a downward rating adjustment (or a downgrade) in a declining economy beset by the pandemic while the B- rating today is made (an upgrade) when almost every macro-economic criteria from fiscal to monetary to external sector and other structural adjustments in the economy are on a much more stronger footing than a 6.5 years ago. So, today’s B- is a clear signal for solid fundamentals for equities than in 2020.

Rating Upgrade could Improve External Liquidity
As the sovereign rating was upgraded to B-, the restrictions on capital flows to Sri Lanka when the rating was at CCC+ will ease while opening up avenues which were hitherto close. In 2020 when the rating was at B-, Sri Lanka was locked out of the international capital markets while today’s B- opens up the access to the international capital markets should the Sri Lankan sovereign wants to raise foreign capital. Similarly, the corporates and individuals could also tap into foreign funding lines than before, further improving the foreign currency liquidity in the domestic market and thereby alleviating any concerns about another debt default. So, the equity investors are again reassured of the stability of the external sector of the economy and thereby the broader economy to deliver better performance by the companies and also to attract portfolio and direct investment flows into the market, enhancing liquidity.

Market Ends Lower Proving Colombo Stocks Still Lack Momentum...The All-Share Price Index (ASPI) ended lower by 0.09% to ...
24/09/2026

Market Ends Lower Proving Colombo Stocks Still Lack Momentum...

The All-Share Price Index (ASPI) ended lower by 0.09% to close at 21,066.89 after a volatile trading session. Meanwhile, the more liquid S&P SL20 index decreased by 0.08% to settle at 5,942.78.

It appears that the market still lacks momentum as the stocks couldn’t carry the gains in the last two sessions forward. Today’s performance extended the ASPI’s YTD decline to 6.88% while the S&P SL20 Index is 3.49% down on the year. ‎‎

Market breadth leaned negative, with 86 gainers against 109 decliners. Dialog Axiata PLC (DIAL.N), Richard Pieris and Company PLC (RICH.N) and Distilleries Company of Sri Lanka PLC (DIST.N) were the top contributors to the ASPI’s downward movement.

‎‎Market turnover stood at LKR 1.20Bn, well below the YTD daily average of LKR 3.75Bn. Trading activity was led by Digital Mobility Solutions Lanka PLC (PKME.N), Dipped Products PLC (DIPD.N) and Access Engineering PLC (AEL.N). Sector- wise, Materials, Capital Goods and Transportation counters dominated trading activity.‎

Indices Extend Gains To Second Successive Session....The All-Share Price Index (ASPI) ended higher for the second consec...
23/09/2026

Indices Extend Gains To Second Successive Session....

The All-Share Price Index (ASPI) ended higher for the second consecutive session, adding 0.15% to close at 21,085.15. Meanwhile, the more liquid S&P SL20 index followed suit, rising 0.31% to settle at 5,947.50. Today’s performance trimmed the ASPI’s YTD decline to 6.80% while the S&P SL20 Index is 3.41% down on the year. ‎‎

Market breadth leaned slightly positive, with 100 gainers against 87 decliners. Commercial Bank of Ceylon PLC (COMB.N), Dialog Axiata PLC (DIAL.N), Hatton National Bank PLC (HNB.N) were the top contributors to the ASPI’s upward movement.‎‎

Market turnover stood at LKR 1.32Bn, below the YTD daily average of LKR 3.77Bn. Trading activity was led by Sampath Bank PLC (SAMP.N), Dipped Products PLC (DIPD.N) and E B Creasy & Company PLC (EBCR.N). Sector- wise, Capital Goods, Banking and Material counters dominated trading activity.‎

Meanwhile, the global oil benchmark fell further below USD 100 a barrel towards USD 98 at the time of this report as the US and Iran had fairly good talks on the sidelines of the UN General Assembly.‎

Additionally, the IMF Staff Mission successfully concluded their seventh program review under the ongoing Extended Fund Facility program with Sri Lanka.

Treasury Bill Yields Advance Across All Tenors for 2nd Week in a RowTreasury Bill yields increased across all maturities...
23/09/2026

Treasury Bill Yields Advance Across All Tenors for 2nd Week in a Row

Treasury Bill yields increased across all maturities this week, with the 3-month and 6-month yields increasing marginally by 2 bps and 1bp to 9.20% and 9.37% respectively, while the 1-year yield rose by 5bps to 9.93%. The Central Bank offered LKR 60.00Bn and accepted the full amount, with the auction recording a strong 2.41x oversubscription.

IMF Staff Concludes 7th Review and 2026 Article IV ConsultationThe IMF Staff and Sri Lankan authorities have concluded d...
23/09/2026

IMF Staff Concludes 7th Review and 2026 Article IV Consultation

The IMF Staff and Sri Lankan authorities have concluded discussions on the Seventh Extended Fund Facility (EFF) Review and the 2026 Article IV Consultation. The Staff Mission noted Sri Lanka's economy has proven remarkably resilient, growing 4.2% in 2QCY26 and marking an eleventh straight quarter of strong growth though risks remain from the Middle East conflict, global trade policy shifts, and El Niño.

On fiscal policy, the IMF stressed the need for a medium-term revenue strategy to sustain collections while broadening the tax base, rationalizing exemptions, and strengthening compliance. Cost-recovery energy pricing and faster capital spending ex*****on, including cyclone Ditwah recovery were also flagged as priorities.

On monetary policy, they called for readiness to address inflation and greater exchange rate flexibility to absorb shocks and support reserves. They recommended keeping the 5.0% inflation target for now, with a lower target considered only once inflation stabilises. It also urged safeguarding anti-corruption legislation, warning that parts of recently tabled amendments could weaken transparency and accountability.

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