Equities close marginally firmer after a volatile week, while the Public Debt Management Office concludes a large T-Bond auction and secondary market yields drift higher.
Key Highlights
The Colombo Stock Exchange closed marginally higher on Thursday, snapping a two-session decline, while the Public Debt Management Office concluded a T-Bond auction that raised a total of LKR 150 billion across three maturities. Trading activity on the equity side remained subdued, with turnover well below its recent average, even as share volumes picked up compared to the previous session.
Stock Market Summary
The All Share Price Index (ASPI) added 25 points to close at 21,382.74, while the S&P SL20 was little changed, slipping 1.46 points to 6,002.46. Daily turnover came in at LKR 1.13 billion, down from the prior session and roughly 56 percent below the monthly average of LKR 2.6 billion, pointing to continued caution among investors. Share volume rose to 57.73 million units. The Capital Goods sector accounted for the largest share of turnover at 30 percent, with the Materials and Food, Beverage & Tobacco sectors together contributing a further 28 percent. Foreign investors were net sellers on the day, with outflows of LKR 85.06 million against inflows of LKR 34.54 million, for a net outflow of LKR 50.52 million. Market capitalisation stood at LKR 7,764.70 billion.
Fixed Income Summary
The PDMO’s T-Bond auction raised LKR 150 billion, with the bulk — LKR 70 billion — drawn from a 2030 maturity carrying a 10.00 percent coupon at a weighted average yield of 10.83 percent. A further LKR 50 billion was raised via a 2034 maturity at a weighted average yield of 11.96 percent, and LKR 30 billion via a 2037 maturity at 12.08 percent. In the secondary market, activity was concentrated in auction-linked tenors, with the 2030 bond trading between 10.75 and 10.90 percent through the session. Yields across the medium- to long-term curve moved up by 5 to 20 basis points compared to the prior week. Separately, a T-Bill auction cleared at 9.03 percent for 91 days, 9.24 percent for 182 days and 9.77 percent for 364 days.
Currency Market Update
The rupee appreciated marginally against the US dollar, closing at LKR 328.60 compared to LKR 328.75 previously. Liquidity in the banking system remained broadly stable at LKR 366.11 billion, little changed from LKR 366.20 billion in the prior session.
Business Impact
For businesses and investors, the day’s developments point to steady, if unremarkable, conditions in equities alongside a notable increase in government borrowing costs at the longer end of the yield curve. Firms with upcoming debt financing plans, or those benchmarking against government securities, may want to note the higher yields recorded at this week’s T-Bond auction, particularly in the 2034 and 2037 maturities. The subdued equity turnover suggests investors remain in a wait-and-see posture rather than reacting to any single catalyst.
What to Watch Next
Markets will watch for the results of the T-Bond auction’s second phase, along with whether the recent uptick in secondary market yields persists into next week. On the equity side, sustained foreign selling — even at modest daily levels — bears monitoring given the scale of outflows recorded so far this year.
Key Numbers
| Metric | Value |
|---|---|
| ASPI | 21,382.74 (+25.00 pts / +0.12%) |
| S&P SL20 | 6,002.46 (-1.46 pts / -0.02%) |
| Turnover | LKR 1.13 billion |
| Share Volume | 57.73 million |
| Net Foreign Flow (Equity) | -LKR 50.52 million |
| Market Capitalisation | LKR 7,764.70 billion |
| T-Bond Auction Total Raised | LKR 150.0 billion |
| 2030 Maturity Weighted Avg. Yield | 10.83% |
| 2034 Maturity Weighted Avg. Yield | 11.96% |
| 2037 Maturity Weighted Avg. Yield | 12.08% |
| USD/LKR | 328.60 |
| Banking System Liquidity | LKR 366.11 billion |
Business Impact
(see above)
Source Attribution
Source: Colombo Stock Exchange market data, Central Bank of Sri Lanka statistics and publicly available market information.