ASPI and S&P SL20 close lower on below-average turnover, while August inflation rises to an eight-month high
Key Highlights
The Colombo Stock Exchange closed lower on Tuesday as selling pressure built through the second half of trading, while a fresh inflation reading added a note of caution for businesses tracking price trends. Trading activity stayed below its monthly norm even as fixed income markets held broadly steady.
Stock Market Summary
The All Share Price Index (ASPI) declined 20.38 points, or 0.10%, to close at 21,318.31. The S&P SL20, which tracks the most liquid large-cap stocks, fell further, losing 23.23 points, or 0.39%, to end at 5,986.45.
Turnover totaled LKR 2.32 billion, more than a third below the monthly average of LKR 3.6 billion, pointing to a session driven more by cautious repositioning than fresh conviction. The Capital Goods sector accounted for roughly a third of turnover, with Food, Beverage & Tobacco and Diversified Financials counters also active. Foreign investors were net sellers of local equities, with outflows totaling LKR 612.5 million for the day.
Fixed Income Summary
Secondary market activity in government securities was moderate, with the yield curve largely unchanged from the prior week across most tenors. At the latest T-bill auction, yields eased modestly across all three tenors compared to the previous round, while a T-bond auction covering 2030 and 2035 maturities drew total bids of LKR 14.5 billion. Banking system liquidity edged higher to LKR 348.76 billion from LKR 347.33 billion previously.
Currency Market Update
The rupee firmed slightly against the US dollar, trading at LKR 327.90 compared to LKR 328.01 previously.
Business Impact
August’s inflation print is the standout figure for businesses this week. The Colombo Consumer Price Index (CCPI) accelerated to 8.0% year-on-year in August, up from 7.3% in July — a 70 basis point jump attributed largely to a statistical base effect in food prices rather than a fresh surge in demand. For importers, retailers and consumer-facing businesses, the acceleration is worth watching for signs of whether it persists into September or proves transitory. Meanwhile, steady borrowing costs at the T-bill auction offer some near-term stability for businesses reliant on short-term credit.
What to Watch Next
Markets will be watching whether foreign selling in equities continues into the new month, and whether September’s inflation data confirms or reverses August’s uptick.
Key Numbers
| Metric | Value | Change |
|---|---|---|
| ASPI | 21,318.31 | -20.38 (-0.10%) |
| S&P SL20 | 5,986.45 | -23.23 (-0.39%) |
| Turnover | LKR 2.32 Bn | 36.2% below monthly average |
| Foreign Flow (Equities) | -LKR 612.5 Mn | Net outflow |
| USD/LKR | 327.90 | Appreciated from 328.01 |
| CCPI Inflation (YoY) | 8.0% (Aug) | Up from 7.3% (Jul) |
| Banking System Liquidity | LKR 348.76 Bn | Up from LKR 347.33 Bn |
Source Attribution
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics, Department of Census and Statistics, and publicly available market information.