Net foreign outflows in the month were a fraction of the 2026 monthly average, with John Keells Holdings accounting for most of the final day’s net selling.
Foreign investors sold more Sri Lankan shares than they bought in September, but at a much slower pace than earlier in the year.
Net foreign outflows from the Colombo Stock Exchange (CSE) totalled LKR 1.55 billion for the month. Net outflows for the year to date reached LKR 57.3 billion. That means the first eight months of 2026 saw net outflows of about LKR 55.7 billion, an average of roughly LKR 7.0 billion a month. September’s outflow was about 22% of that monthly average.
Year-to-date context
The month’s moderation does not change the bigger picture. Foreign investors remain heavy net sellers of Colombo equities in 2026, and September’s lower figure is small against the year’s cumulative total. The data provided cover only the month and year-to-date totals, so it is not possible to say whether September was the slowest month of the year, only that it was well below the average of the preceding eight.
Selling was uneven through the month
Foreign flows were mixed over the last two weeks of the month. Selling was heaviest on 24 and 25 September, when net outflows were roughly LKR 162 million and LKR 193 million respectively. Foreign investors were small net buyers on 28 and 29 September, before turning net sellers again on 30 September.
Final day of the month
On 30 September, foreign investors bought LKR 95.5 million of shares and sold LKR 162.9 million, a net outflow of LKR 67.4 million. That was small relative to total turnover of LKR 1.55 billion.
Net selling was concentrated in a single stock. John Keells Holdings (JKH) recorded net foreign sales of LKR 55.2 million, equivalent to about 82% of the day’s net outflow. Other net foreign sales included Sunshine Holdings (SUN) at LKR 28.5 million, Dialog Axiata (DIAL) at LKR 27.9 million, JXG at LKR 12.6 million and SPEN at LKR 7.4 million.
Net foreign buying was led by PABC at LKR 23.5 million, followed by TAP at LKR 18.0 million and Access Engineering (AEL) at LKR 14.3 million. NTB and CINS.X each drew smaller net purchases of about LKR 3 million.
The ASPI closed marginally lower at 20,812.93, down 4.89 points, with the S&P SL20 at 5,894.16.
Business Impact
Foreign participation affects how easily large share blocks can be traded and how readily listed companies can raise equity capital. A prolonged period of net foreign selling removes one source of demand from the market. Slower outflows reduce that pressure, but a single month does not show a change in direction.
Executives considering share issues or investor outreach, and businesses with large local equity holdings, may want to track whether the slower pace continues in October. Corporate treasurers should note that equity flows are separate from the currency market, and the data do not link September’s outflows to the rupee, which was largely steady at LKR 330.83 per US dollar.
Key Numbers
| Indicator | Level |
|---|---|
| Net foreign flow, 30 September | -LKR 67.4 Mn |
| Foreign purchases, 30 September | LKR 95.5 Mn |
| Foreign sales, 30 September | LKR 162.9 Mn |
| Net foreign flow, September | -LKR 1.55 Bn |
| Net foreign flow, year to date | -LKR 57.3 Bn |
| Average monthly net outflow, Jan to Aug (derived) | about LKR 7.0 Bn |
| Largest net foreign sale, 30 September | JKH, LKR 55.2 Mn |
| Largest net foreign purchase, 30 September | PABC, LKR 23.5 Mn |
| Daily turnover, 30 September | LKR 1.55 Bn |
| ASPI | 20,812.93 (-0.02%) |
Source Attribution
Source: Colombo Stock Exchange market data and publicly available market information.