IntelScoops

By Business Desk

Colombo – August 4, 2025

In a historic milestone for Sri Lanka’s capital markets, the All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) surpassed the 20,000-point mark for the first time ever during morning trading today.

The breakthrough reflects a renewed wave of investor confidence, particularly in sectors such as banking, energy, and diversified holdings, according to market analysts. By midday, the index had held steady above the symbolic threshold, reinforcing its upward momentum.

The CSE’s benchmark ASPI—widely seen as a key indicator of investor sentiment and economic outlook—has gained more than 15 percent year-to-date, boosted by a combination of local institutional buying, foreign inflows, and expectations of macroeconomic recovery.

Market Reactions and Key Movers

Several blue-chip counters saw notable gains during the session, with increased activity reported in shares of John Keells Holdings, Commercial Bank, LOLC Holdings, and Lanka IOC. Analysts attributed the bullish trend to improving macroeconomic indicators, including stabilising inflation, positive credit ratings outlook, and stronger corporate earnings in recent quarters.

Speaking to reporters this morning, a senior official at the CSE described the event as “a testament to long-term investor resilience and structural market reforms that are now bearing fruit.”

Economic Context

The record-breaking rally comes at a time when Sri Lanka is navigating a complex economic recovery following its 2022 financial crisis. Reforms under the International Monetary Fund (IMF) programme, improved reserves, and fiscal discipline have contributed to restoring some investor faith.

Foreign participation in the CSE had seen a modest resurgence over the past few months, with renewed interest in government bonds and equities alike. Today’s ASPI peak also signals rising confidence ahead of the 2026 general elections, as policymakers continue to court investment and private sector growth.

Caution Ahead

While today’s milestone is significant, analysts also urged caution, pointing to global volatility, interest rate movements, and regional geopolitical risks that could affect capital markets.

Still, market participants broadly welcomed the news. “Crossing 20,000 is not just a number—it’s a psychological boost for the market, especially for retail investors who have weathered extreme uncertainty in recent years,” said a senior portfolio manager at a Colombo-based brokerage firm.

The CSE is expected to release its full daily market report by evening, detailing turnover volumes, foreign participation levels, and sector-specific performance.