The ASPI slips marginally after early gains, turnover rebounds from recent lows, and government securities yields ease from the previous session.
Key Highlights
- The ASPI fell 4.89 points (0.02%) to 20,812.93, and the S&P SL20 declined 2.24 points (0.04%) to 5,894.16.
- Turnover reached LKR 1.55 billion, up 53.8% from the previous session and 4.0% above the monthly average.
- Foreign investors recorded a net outflow of LKR 67.4 million.
- The Central Bank of Sri Lanka kept its Overnight Policy Rate at 8.75%.
- The rupee closed at LKR 330.83 per US dollar.
Stock Market Summary
The Colombo Stock Exchange ended with marginal losses after the market gave up early gains in the second half of the session. Both benchmark indices moved by less than 0.1%.
Trading activity improved from the previous session’s LKR 1.01 billion, though the day’s turnover was only slightly above the monthly average. Share volume told a different story, falling 15.5% to 58.8 million shares. Access Engineering PLC was the largest contributor to turnover at LKR 272 million, or 18% of the total. The Capital Goods sector accounted for 36% of turnover, while Banking and Diversified Financials together contributed 26%.
Foreign investors sold LKR 162.9 million of shares and bought LKR 95.5 million. Month-to-date net foreign outflow stands at LKR 1.55 billion, while the year-to-date figure is LKR 57.3 billion.
Fixed Income Summary
The Central Bank’s decision to hold the policy rate followed its May 2026 tightening, and the bank cited uncertainty linked to Middle East tensions and potential El Niño-related risks.
Government bond yields eased by up to 10 basis points at most maturities compared with the previous day. In the weekly Treasury bill auction, LKR 80.0 billion was accepted in the first phase, matching the amount offered. The 3-month yield rose 5 basis points to 9.25%, the 6-month rose 4 basis points to 9.41% and the 12-month rose 2 basis points to 9.95%.
Liquidity in the banking system contracted to LKR 338.66 billion from LKR 369.35 billion.
Currency Market Update
The rupee depreciated marginally to LKR 330.83 per US dollar from LKR 330.79 earlier. Headline CCPI inflation for September was 8.0% year-on-year, unchanged from August.
Business Impact
With the policy rate unchanged, short-term borrowing costs are unlikely to shift immediately. Slightly higher Treasury bill yields at auction suggest short-term funding costs are not easing yet. For businesses with imports or foreign-currency payments, the rupee’s stability keeps near-term cost planning predictable.
What to Watch Next
- Second-phase results of the Treasury bill auction
- Whether foreign selling continues into October
- Whether the weekly rise in medium-term bond yields reverses
Key Numbers
| Indicator | Level | Change |
|---|---|---|
| ASPI | 20,812.93 | -4.89 pts (-0.02%) |
| S&P SL20 | 5,894.16 | -2.24 pts (-0.04%) |
| Turnover | LKR 1.55 Bn | +53.8% day-on-day |
| Share volume | 58.8 Mn | -15.5% |
| Net foreign flow | -LKR 67.4 Mn | Net outflow |
| Overnight Policy Rate | 8.75% | Unchanged |
| 3M / 6M / 12M T-bill yield | 9.25% / 9.41% / 9.95% | +5 / +4 / +2 bps |
| USD/LKR | 330.83 | From 330.79 |
| Banking system liquidity | LKR 338.66 Bn | From LKR 369.35 Bn |
| CCPI inflation (Sep-26) | 8.0% YoY | Unchanged |
Source Attribution
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics, Department of Census and Statistics and publicly available market information.