Following the escalation in the geopolitical conflicts during the weekend and higher global oil prices, the Colombo Bourse recorded a steep fall during the early trading hours, which marginally recovered, however closed the day in negative territory at 22,570, marking a downtick of 203 points.

The S&P SL20 also fell by 41 points to close at 6,223. RIL, CTHR, DIAL, COMB and BIL emerged as the top negative contributors to the ASPI. HNW investor participation was low, while the retail investor activity remained at elevated levels, particularly on trading stocks.

Daily turnover stood at LKR 4.1Bn, marking an increase of 6.1% over the monthly average of LKR 3.9Bn. Capital Goods sector led the daily turnover with a share of 19%, followed by the Diversified Financials, and Banking sectors collectively contributing 27%. Foreign investors remained net sellers, posting a net outflow of LKR 78.5Mn.

BOND MARKET

The secondary market experienced a soft start to the week

Following the New Year holidays, the secondary bond market experienced slight selling interest, with low volumes and limited activity. Trading activity remained minimal, with 15.06.2029 and 15.10.2029 maturities trading in the range of 9.90% to 10.00%.

On the external front, the LKR slightly depreciated against the USD, standing at LKR 316.44/USD compared to LKR 315.72/USD seen earlier. Liquidity in the banking system expanded to LKR 112.44Bn from LKR 106.32Bn recorded previously.

Furthermore, Sri Lanka’s PMI for Manufacturing increased to 66.7 in Mar-26, supported by heightened activity related to seasonal demand whilst PMI for Services recorded an index value of 59.4 in Mar-26, indicating an expansion in services activities compared to the previous month.

-First Capital Research-