CSE trading surpassed the 23500 points level yesterday with a very high turnover, touching more than Rs 9 billion, market analysts pointed out.

The reason was because market-friendly macro and micro environmental factors were vibrantly at work.

The All Share Price Index up by 100.90 points, while the S and P SL20 rose by 63.65 points. Turnover stood at Rs 9.26 billion with 21 crossings.

Top seven crossings were: Dialog Axiata 49.6 million shares crossed to the tune of Rs 1.6 billion and its shares traded at Rs 33, Sampath Bank two million shares crossed for Rs 323.7 million; its shares traded at Rs 156, Cargills Ceylon 300,000 shares crossed for Rs 240 million; its shares traded at Rs 220, Tokyo Cement 760,000 shares crossed to the tune of Rs 85.8 million; its shares traded at Rs 113, Lanka IOC 540,000 shares crossed for Rs 78.3 million; its shares traded at Rs 145 and Hayleys 334,000 shares crossed for Rs 69 million; its shares traded at Rs 207.

In the retail market top seven companies that mainly contributed to the turnover were; ACL Cables Rs 470 million (4.6 million shares traded), RIL Properties Rs 322 million (8.5 million shares traded), Prime Lands Residencies Rs 296 million (7.4 million shares traded), Lanka Credit and Business Finance Rs 257 million (29 million shares traded), York Arcade Rs 223 million (18.3 million shares traded), Lanka IOC Rs 217 million (1.5 million shares traded) and Sierra Cables Rs 170 million (4.7 million shares traded). During the day 326.2 million share volumes changed hands in 49537 transactions.

It is said that the banking and finance sector led the market, while the telecommunication sector, mainly Dialog Axiata, performed well.

Yesterday the rupee was quoted at Rs 309.20/28 to the US dollar in the spot market, weaker from Rs 309.20/30 the previous day, having depreciated in recent weeks, dealers said, while bond yields were broadly steady.

For example;

A bond maturing on 15.12.2028 was quoted at 9.30/40 percent.

A bond maturing on 15.12.2029 was quoted at 9.70/75 percent, down from 9.75/80 percent.

A bond maturing on 15.03.2031 was quoted at 10.10/25 percent.

A bond maturing on 01.06.2033 was quoted at 10.70/75 percent.

A bond maturing on 15.06.2035 was quoted at 11.20/25 percent, up from 11.15/25 percent.

The telegraphic transfer rates for the American dollar were 305.6000 buying, 312.6000 selling; the British pound was 409.2865 buying, and 420.6047 selling and the euro was 353.4570 buying, 364.8452 selling.

By Hiran H. Sevewiratne

The government’s new policy framework to allocate a maximum interest rate for stock market deposits would pave the way for companies and investors to plan their future business activities, a senior stockbroker said.

‘Accordingly, the Colombo Stock Exchange (CSE) has entered a period of strong revival, supported by economic stabilization and rising investor confidence while significant market reforms would support the new policy framework on interest, Assistant Vice President Softlogic Stockbrokers, Eardly Kern, told The Island Financial Review.

He said that the imposition of maximum interest rates for stock market deposits would prevent the interest rates from moving upwards, thus paving the way for investors to invest in stocks with a lot of confidence.

Kern added: ‘The CSE outlook would provide expanding opportunities for investors as Sri Lanka positions itself for market-led investor platforms.

‘Improving macro fundamentals, such as lower interest rates, rising corporate earnings and historically attractive valuations, have been key catalysts in driving investment into the equities market.

‘These tailwinds, together with ongoing economic reforms, have helped re-establish confidence among both local and foreign investors.

‘Over the past two years, the number of CDS accounts has surpassed 949,000, with digital on-boarding through the CSE mobile app driving the latest surge.

‘Further, foreign inflows for 2024 amounted to USD 66.5 million, while Rs 175 billion was raised through capital market activity, including 16 new listings. With a target of 20 IPOs on the horizon, the CSE anticipates several new companies entering the market by early 2026.

‘The All Share Price Index (ASPI) delivered an impressive 49.7 percent return in 2024, ranking the CSE as the second-best performing market in Asia for the year. By November 2025, the index had risen a further 45.65 percent amounting to an extraordinary two-year return of approximately 95 percent.

‘The S&P SL20 Index recorded a parallel recovery, gaining 58.5 percent in 2024 and 31.84 percent so far in 2025.

‘ Despite the rally, the CSE continues to trade below its 10-year average PER and valuations remain significantly more attractive than in regional markets, such as, India, Malaysia, Vietnam, and China.

‘ Turnover has surged to Rs 1.06 trillion in 2025 (as of mid-November), nearly doubling the figure recorded in 2024. Market capitalization grew 34 percent n 2024, despite only around 40,000 active investors capturing most of the gains—highlighting the potential for broader participation.

‘ Corporate earnings have also strengthened markedly. After generating Rs 686 billion in earnings during 2024—a 50% year-on-year increase—listed entities are projected to deliver between Rs 775–800 billion in 2025. Earnings for the first half of 2025 have already grown 57 percent year-on-year.’

By Hiran H Senewiratne

Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, has reinforced its enduring commitment to preserving national culture by sponsoring the Kelaniya Duruthu Festival, aligning long standing patronage with purposeful community engagement to honour religious heritage, support cultural continuity, and strengthen shared values.

The annual Kelaniya Duruthu Festival, one of Sri Lanka’s most significant religious and cultural observances, was held on 8th, 9th and 11th January 2026, marking a congregation of thousands of devotees and visitors at the historic Kelaniya Raja Maha Vihara. As a long-term patron, Dialog continues to provide sponsorship support, enabling the seamless organisation of the festival while uplifting traditions deeply rooted in the nation’s cultural identity.

Through its continued support of the Kelaniya Duruthu Festival, Dialog underscores its role as a responsible corporate citizen dedicated to safeguarding Sri Lanka’s cultural and religious heritage for future generations. This commitment is further reflected in Dialog’s long-term patronage of national events such as the Kandy Esala Perahara, Nawam Maha Perahara at Gangaramaya, Katharagama Esala Perahara and Gatabaru Esala Perahara. Complementing these efforts, Dialog has also undertaken heritage preservation initiatives including the construction of the vestibule at Dimbulagala Aranya Senasanaya, the launch of a website and directory of Amarapura Maha Nikaya Temples, and the restoration of the Anuradhapura Maha Vihara Sannipatha Shalawa.