The ASPI gained 198 points on June 25 as turnover returned to the monthly average, while the rupee recorded its sharpest single-session decline of the week and secondary bond yields extended their downward trend ahead of tomorrow’s Treasury Bond auction.
Key Highlights
- ASPI closed at 22,407.04, up 198.46 points (+0.89%)
- S&P SL20 gained 61.10 points to close at 6,242.75 (+0.99%)
- Market turnover reached LKR 2,729.93 million, 5.1% above the monthly average
- Foreign investors posted a net outflow of LKR 50.32 million, narrowing sharply from LKR 130.65 million the prior session
- MTD net foreign outflow extended to LKR 1,195.8 million
- Secondary bond yields declined up to 15 basis points week-on-week across short and mid-tenor maturities
- Banking system excess liquidity expanded to LKR 65.36 billion from LKR 61.04 billion
- USD/LKR moved sharply to 336.57 from 334.77, a single-session depreciation of 1.80 rupees
- Treasury Bond auction scheduled for June 26 with LKR 60 billion on offer
Stock Market Summary
The Colombo Stock Exchange staged a strong recovery on June 25, 2026, reversing the losses recorded over the prior two sessions. The All Share Price Index gained 198.46 points to close at 22,407.04, while the S&P SL20 advanced 61.10 points to finish at 6,242.75. Both indices recovered the ground lost since June 23, with the ASPI closing above the 22,400 mark for the first time in the current week.
Market turnover for the session reached LKR 2,729.93 million, equivalent to USD 8.16 million, representing a 5.1% increase over the monthly average of LKR 2.6 billion. This marks a sharp turnaround from the prior two sessions, where turnover had fallen as low as 55% below the monthly average. Volume for the day was 67.79 million shares, up 39.9% from the previous session.
Retail participation was notably high during the session, while high-net-worth participation remained at average levels. The main positive contributors to the ASPI were DIAL, JKH, HAYL, MELS and DIPD. The Materials sector led daily turnover with a 23% share, followed by Capital Goods and Diversified Financials sectors collectively contributing 32%. Top turnover contributors included COCR at 7%, PKME and SIL each at 6%, HAYC at 4% and COMB at 4%.
Among individual counters, ASPH was the standout performer of the session, gaining 17%. SLND advanced 11%, CABO rose 9%, PEG gained 8% and DIPD added 7%. On the downside, TANG fell 6%, ODEL declined 5% and CFLB shed 4%.
Foreign investors remained net sellers but at a significantly reduced pace. Total foreign inflows amounted to LKR 54.53 million against outflows of LKR 104.85 million, producing a net outflow of LKR 50.32 million. This represents a sharp narrowing from LKR 130.65 million on June 24 and LKR 225.10 million on June 23. SPEN and JKH attracted the largest net foreign inflows at LKR 20.5 million and LKR 20.0 million respectively. SIRA recorded the largest net foreign outflow at LKR 45.2 million, followed by HBS at LKR 17.8 million and LALU at LKR 11.0 million.
The month-to-date net foreign outflow now stands at LKR 1,195.8 million, while the year-to-date figure has reached LKR 33,651.2 million. Market valuations edged up to a price-to-earnings ratio of 11.8x. Total market capitalization rose 0.9% to LKR 8,129.09 billion.
Fixed Income Summary
Secondary bond market yields continued to drift lower on a week-on-week basis on June 25. The 2-year, 3-year and 4-year tenors each declined 15 basis points to 10.70%, 10.85% and 11.20% respectively. The 5-year tenor eased 5 basis points to 11.35%, while the 8-year, 9-year and 10-year maturities each shed 5 basis points to 11.70%, 11.85% and 11.95%. The 11-year tenor recorded a larger decline of 13 basis points to 12.00%. The 13-year maturity held unchanged at 12.13%.
Trading was concentrated among primary dealers and banking sector participants. Buying interest was noted at the longer end of the curve, while the shorter end saw mild selling pressure ahead of the June 26 Treasury Bond auction. Among specific maturities, the 15.03.2028 bond traded at 10.60%, the 15.11.2029 maturity changed hands at 10.95% and the 01.08.2030 bond traded at 11.22%. At the longer end, the 15.03.2035 maturity traded at 11.85% and the 15.08.2036 bond changed hands between 12.01% and 11.98%.
The June 26 Treasury Bond auction has LKR 45,000 million on offer for the 11.00%/2030 ‘B’ tenor and LKR 15,000 million for the 11.50%/2035 ‘A’ tenor, totaling LKR 60,000 million. Phase 2 results remain pending at the time of publication.
Foreign holdings of government securities remained unchanged on a week-on-week basis. Total outstanding government securities stood at LKR 18,438.71 million. Banking system excess liquidity expanded to LKR 65.36 billion from LKR 61.04 billion in the prior session, providing a supportive backdrop for fixed income market activity.
Currency Market Update
The Sri Lankan rupee recorded its sharpest single-session decline of the week on June 25, with the USD/LKR rate moving to 336.57 from 334.77 in the prior session, a depreciation of 1.80 rupees. The move extends a three-session run of rupee weakness that began at 333.76 on June 23, bringing the cumulative three-session depreciation to 2.81 rupees or approximately 0.84%. The depreciation occurred despite improved domestic equity market conditions and a narrowing in foreign equity outflows, suggesting that demand-side pressure for dollars in the foreign exchange market drove the move rather than broad risk-off sentiment.
Business Impact
The sharp rupee depreciation of 1.80 rupees in a single session is the most immediate business-facing development of the day. Importers face higher landed costs on all dollar-denominated purchases with immediate effect, while exporters benefit from improved repatriated earnings on dollar revenues. Businesses carrying unhedged dollar obligations should review their positions in light of the pace of this week’s currency move. On the equity side, the return of retail participation and the recovery in turnover to above the monthly average are positive signals for market confidence after two difficult sessions. The continued decline in secondary bond yields across the curve supports a gradual easing in long-term financing costs, though the June 26 T-Bond auction outcome will be a critical test of whether that trend holds. The combined maturity wall of over LKR 110 billion due in the week ending July 3 will be the next major stress test for both liquidity conditions and the exchange rate.
What to Watch Next
- June 26 Treasury Bond auction results — LKR 60 billion on offer across two tenors
- Whether the rupee stabilizes above 336 or continues to weaken in the sessions ahead
- Foreign investor flow direction as June MTD outflows approach LKR 1.2 billion
- Phase 2 T-Bill auction results from the June 24 auction, still pending
- Market turnover sustainability above the monthly average following today’s recovery
- The LKR 110 billion maturity wall falling due in the week ending July 3
Key Numbers:
| Metric | Value |
|---|---|
| ASPI | 22,407.04 (+198.46 pts, +0.89%) |
| S&P SL20 | 6,242.75 (+61.10 pts, +0.99%) |
| Market Turnover | LKR 2,729.93 Mn |
| Market Volume | 67.79 Mn shares |
| Market Cap | LKR 8,129.09 Bn |
| PER | 11.8x |
| PBV | 1.4x |
| Net Foreign Flow | -LKR 50.32 Mn |
| MTD Foreign Flow | -LKR 1,195.8 Mn |
| YTD Foreign Flow | -LKR 33,651.2 Mn |
| 2-Year Bond Yield | 10.70% (-15 bps WoW) |
| 4-Year Bond Yield | 11.20% (-15 bps WoW) |
| 10-Year Bond Yield | 11.95% (-5 bps WoW) |
| Banking Liquidity | LKR 65.36 Bn |
| USD/LKR | 336.57 (+1.80 session) |
| T-Bond Auction (June 26) | LKR 60,000 Mn offered |
Source Attribution:
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.