The ASPI posted a marginal gain on June 23 while bond yields fell sharply across the curve and banking system liquidity surged to LKR 64 billion.
Key Highlights
- ASPI closed at 22,256.49, up 2.97 points (+0.01%)
- S&P SL20 declined 2.06 points to 6,193.65
- Market turnover reached LKR 1,563.17 million, 42.4% below the monthly average
- Foreign investors posted a net outflow of LKR 225.10 million
- Treasury bond yields fell up to 30 basis points week-on-week
- Banking system excess liquidity climbed to LKR 64.26 billion
- USD/LKR stood at 334.54, up from 333.76 previously
Stock Market Summary
The Colombo Stock Exchange recorded subdued activity on June 23, 2026. The All Share Price Index edged higher by 2.97 points to close at 22,256.49, while the S&P SL20 declined marginally by 2.06 points to 6,193.65. The divergence between the two indices reflects mixed performance across large-cap counters tracked by the blue-chip index.
Market turnover for the day stood at LKR 1,563.17 million, equivalent to USD 4.67 million, which is 42.4% below the monthly average of LKR 2.7 billion. Trading volume, however, rose 47.1% to 65.13 million shares, suggesting activity concentrated in lower-priced counters rather than high-value large-cap names.
The Capital Goods sector led daily turnover with a 27% share. The Banking and Diversified Financials sectors collectively accounted for a further 29% of total activity. Top turnover contributors included HHL at 14%, NDB at 11%, HEXP at 6%, PAP at 5% and JKH at 4%.
Among individual counters, BOGA was the top gainer at 9%, followed by LCEY, COLO, BERU and HEXP each rising 6%. On the downside, HOPL fell 8%, AGST.X declined 7%, and INME, RCH and RPBH each shed 5%.
Foreign investors remained net sellers, recording outflows of LKR 226.59 million against inflows of LKR 1.50 million, for a net outflow of LKR 225.10 million. HHL accounted for LKR 202.6 million of this outflow. The month-to-date net foreign position now stands at negative LKR 1,014.8 million, while the year-to-date outflow has reached LKR 33,470.2 million.
Market valuations stood at a price-to-earnings ratio of 11.7x and a price-to-book value of 1.4x. Total market capitalization was LKR 8,074.47 billion.
Fixed Income Summary
Secondary bond market yields fell materially across the curve during the week to June 23. The 3-year tenor recorded the largest weekly decline, dropping 30 basis points to 10.80%. The 2-year yield fell 28 basis points to 10.70%, while the 4-year and 5-year maturities each declined 25 basis points to 11.20% and 11.35% respectively. The 10-year bond yield eased to 11.90% from 12.15% the previous week.
At the most recent Treasury Bill auction held on June 17, the 91-day bill settled at 10.02%, down 7 basis points, and the 184-day bill at 10.16%, down 11 basis points. The 364-day bill was unchanged at 10.16%.
Total outstanding government securities in the system stood at LKR 18,438.71 million, comprising LKR 16,070 million in Treasury Bonds and LKR 2,369 million in Treasury Bills. Foreign holdings of government securities were unchanged on a week-on-week basis.
Currency Market Update
The Sri Lankan rupee depreciated marginally against the US dollar, with the USD/LKR rate standing at 334.54, compared to 333.76 recorded previously. The move represents a modest weakening of the rupee in the near term.
Business Impact
For importers, the marginal rupee depreciation adds a small increment to the landed cost of dollar-denominated goods, though the move is not large enough on its own to materially alter pricing decisions. Exporters benefit marginally from the weaker rupee on repatriated earnings. The decline in bond yields this week is the more significant business-facing development, as it points to a gradual easing in the cost of long-term financing. Businesses monitoring their borrowing costs or planning debt issuances should note the downward trend in the yield curve. The significant rise in banking system liquidity to LKR 64.26 billion further supports conditions for lower short-term lending rates going forward.
What to Watch Next
- Phase 2 results of the most recent Treasury Bond auction, which remain pending
- Whether foreign outflows accelerate or stabilize heading into the final week of June
- The weekly maturity schedule, with LKR 5,472 million in T-Bills maturing in the week ending June 26
- Any movement in the USD/LKR beyond the current 334 range
- Whether market turnover recovers toward the monthly average in the sessions ahead
Key Numbers:
| Metric | Value |
|---|---|
| ASPI | 22,256.49 (+2.97 pts) |
| S&P SL20 | 6,193.65 (-2.06 pts) |
| Market Turnover | LKR 1,563.17 Mn |
| Market Volume | 65.13 Mn shares |
| Foreign Net Flow | -LKR 225.10 Mn |
| MTD Foreign Flow | -LKR 1,014.8 Mn |
| YTD Foreign Flow | -LKR 33,470.2 Mn |
| Market Cap | LKR 8,074.47 Bn |
| PER | 11.7x |
| PBV | 1.4x |
| 3-Year Bond Yield | 10.80% (-30 bps WoW) |
| 10-Year Bond Yield | 11.90% (-25 bps WoW) |
| 91-Day T-Bill | 10.02% |
| Excess Liquidity | LKR 64.26 Bn |
| USD/LKR | 334.54 |
Source Attribution:
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.