Sri Lanka’s economy has undergone a remarkable revival, positioning its capital market as an attractive destination for investors. In 2024, the All Share Price Index (ASPI) and S&P SL20 delivered impressive returns of 49.7% and 58.5%, respectively.
The Colombo Stock Exchange (CSE) recorded a net inflow of USD 66.5 million and raised a record USD 568.61 million in capital, said CSE CEO Rajeeva Bandaranaike at a press conference. He highlighted that GDP growth has increased for five consecutive quarters since Q3 2023, driven by tourism, construction, manufacturing, and mining.
Sri Lanka’s ongoing economic reforms, external debt restructuring, and IMF-backed policies have strengthened investor confidence. The country’s improved credit ratings from Fitch and Moody’s further indicate economic stability.
The ‘Invest Sri Lanka’ Capital Market Investor Forum 2025, scheduled for March 27-28, is expected to attract more investment. In December 2024, Sri Lanka successfully restructured its international sovereign bonds, securing overwhelming bondholder support.
Additionally, the recent appointment of a new government with a two-thirds majority has reinforced market confidence. The ASPI’s 49.7% year-on-year growth positioned Sri Lanka’s market as the second-best performer in South Asia, behind Pakistan.
2024 marked a record year for capital raising, with Rs. 175 billion raised compared to Rs. 73 billion in 2023. The number of companies listed in the stock exchange is also set to grow, with 50 new listings expected in 2025.