Colombo, Sri Lanka – 25 August 2026 – The Colombo Stock Exchange (CSE) concluded trading on Tuesday, August 25th, 2026, with key indices experiencing a slight downturn, reflecting a cautious market sentiment. The All Share Price Index (ASPI) and the S&P Sri Lanka 20 Index both recorded minor declines, extending their year-to-date negative performance.
Key Market Indices Register Slight Declines
The bellwether All Share Price Index (ASPI) shed 65.12 points, closing at 21,279.65, a decrease of 0.31%. Similarly, the S&P Sri Lanka 20 Index, which tracks the 20 most liquid and largest companies, dropped by 14.59 points, settling at 5,994.81, a 0.24% reduction. These movements underscore the prevailing subdued mood in the market, with year-to-date returns for the ASPI and S&P SL20 standing at -5.94% and -2.64% respectively, indicating a challenging year for investors so far.
Turnover Sustains Momentum with Notable Foreign Outflow
Total equity turnover for the day reached Rs. 796,921,078.35, contributing to a market capitalization of Rs. 7,703,785,841,432.45. Investor activity saw domestic purchases totaling Rs. 740,928,504.00 and domestic sales at Rs. 736,783,854.85. However, foreign investors registered a net outflow, with foreign sales of Rs. 60,137,223.50 surpassing foreign purchases of Rs. 55,992,574.35, resulting in a net foreign outflow of Rs. 4,144,649.15. The total volume of shares traded was 27,219,653 across 13,392 trades.
Market Breadth Shows Negative Bias
Market breadth leaned negative, with 121 declining securities against 69 advancing ones, indicating a broader downtrend across the board. Valuation metrics for the day included a Price-to-Earnings (P/E) ratio of 11.20x, a Price-to-Book Value (P/BV) ratio of 1.31x, and a Dividend Yield (DY) of 3.02%. Out of 289 listed companies, 254 actively traded during the session.
Top Contributors and Key Movers
Influential stocks contributing positively to the ASPI included Sierra Cables (SIRA.N), Haycarb (HAYC.N), and LOLC Finance (LOFC.N). Conversely, Cargills (CARG.N), Dialog Axiata (DIAL.N), and Commercial Bank (COMB.N) were among the top negative contributors, exerting downward pressure on the index.
Top gainers by percentage for the day included Agarapatana (AGPL) which surged by 7.24%, followed by LOLC Finance (LOFC.N) with a 6.00% increase, and Cable Solutions (CSLK) rising by 5.51%.
On the other hand, Hunas Holdings (HUNA.N) led the losers, dropping by 7.59%. AGSTAR PLC (AGST.X) and CDB (CDB.N) also saw significant declines of 7.26% and 7.04% respectively.
Sectoral Performance Highlights
While the overall market experienced a dip, a review of year-to-date (YTD) sectoral performance reveals pockets of resilience. The Telecommunication Services sector emerged as the top performer YTD with a remarkable 48% return, followed by Commercial & Professional Services (35%) and Real Estate Management & Development (20%). Health Care Equipment & Services (8%) and Transportation (7%) also recorded positive YTD returns.
Significant Activity in the Debt Market
The debt market witnessed substantial activity, recording a turnover of Rs. 2,710,243,259.36. This marks a significant increase from the previous day’s turnover of Rs. 40,508,219.20, indicating robust trading in corporate debt securities.
Economic Overview and Global Context
The broader economic landscape shows Sri Lanka grappling with inflation, with the Consumer Price Inflation (CCPI) at 7.20% and National Consumer Price Inflation (NCPI) at 4.40%. The indicative exchange rate for USD/LKR stood at 330.17 (sell rate). Quarterly GDP growth continues to be challenging, with Q1 2024 at -1%, following deeper contractions in Q4 2023 (-12%), Q3 2023 (-11%), and Q2 2023 (-11%). Policy rates remain stable, with the Overnight Policy Rate (OPR) at 8.75% and the Standing Rate (SRR) at 2.00%.
Global news continues to shape investor sentiment, with reports of collapsed US-Canada trade talks, threats of US sanctions on China over Iranian oil, and new US tariffs on Chinese imports. These geopolitical and economic developments add layers of complexity to the global financial environment.
Corporate Announcements for the Day
The CSE also saw a series of corporate announcements. Key updates included several companies notifying of upcoming Right Issues, such as Ambeon Capital PLC and Asia Asset Finance PLC. Pegasus Hotels of Ceylon PLC announced a sub-division of shares. Multiple companies declared cash dividends, with noteworthy announcements from Ceylon Tobacco Company PLC (Rs. 41.00 per share) and Dialog Axiata PLC (Rs. 0.70 per share). Several companies were also listed on the ‘Watch List’ and some experienced trading suspensions.
Overall, August 25th, 2026, marked a day of slight retrenchment for the CSE’s main indices, characterized by a net foreign outflow and mixed corporate performances, set against a backdrop of evolving local economic indicators and global trade tensions.
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