The Colombo Bourse remained firmly in the negative territory today amid broadly bearish sentiment.

The market came under significant selling pressure towards the latter of the morning session before recovering at the beginning of the second half, only to resume its downward trajectory and close in the red.

The ASPI fell 168 points to close at 20,644, while the S&P SL20 declined 36 points to close at 5,847. Heavy activity was witnessed in index-sensitive counters, reflecting heightened selling pressure across the market.

HNW investors were the primary drivers of market activity, while retail participation remained at average levels. Turnover was significantly higher compared to recent sessions, largely driven by strong HNW participation.

Daily turnover stood at LKR 3.2Bn, marking an increase of 122.6% over the monthly average of LKR 1.4Bn. Capital Goods sector led the daily turnover with a share of 54%, followed by the Energy, and Food Beverage & Tobacco sectors collectively contributing 24%. Foreign investors remained net sellers, posting a net outflow of LKR 112.4Mn

BOND MARKET

Quiet start to the week in the secondary market

While the secondary bond market continued the subdued sentiment from the closure of previous week, the trading volumes and activities remained limited.

The yield curve stood broadly anchored across all maturities. Over the 2030 segment, both 01.08.2030 and 15.10.2030 maturities traded between 11.15%-11.25%.

At the belly-end, 15.10.2034 bond traded at 12.00%. On the external front, the LKR marginally appreciated against the USD, standing at LKR 330.60/USD, compared to LKR 330.62/USD seen earlier.

Moreover, the Department of Census and Statistics published that Sri Lanka’s unemployment rate increased to 4% in 2Q2026, up by 0.2%YoY and 0.3%QoQ. The number of unemployed people in Sri Lanka during 2Q2026 was estimated at 340,240, while the unemployment rate among women and men stood at 6.1% and 2.8% respectively.

CBSL is yet to publish today's market liquidity.

-First Capital Research-