Sri Lankan stock market demonstrates remarkable resilience and growth in 2024
The Sri Lankan stock market demonstrated remarkable resilience and growth in 2024, strengthening its role as a key partner in Sri Lanka’s economic recovery.
The All Share Price Index (ASPI) closed at 15,944.61 points and the S&P SL20 index closed at 4,862.10 points as at December 31, 2025 which are all time high for both indices.
The market capitalization expanded by over Rs. 1 trillion to reach Rs. 5,695.56 billion, which is a significant growth during the year under review.Market volumes increased substantially from September 2024 onwards.
The average daily turnover volumes for the first 8 months of the year were Rs. 1.5 billion whereas the daily average volumes doubled to Rs. 3.5 billion during the last 4 months of the year.
Capital raised through the stock market also reached a record high of Rs. 167 billion through Equity IPOs, Debt issues, Rights issues, and Private Placements. The first green bond issuance also took place during the course of the year as well.
The CSE also introduced the frameworks for the issuance of debt products such as perpetual bonds, Infrastructure Bonds and Sukuks.
In keeping with global market trends, the settlement cycle for settlement was reduced from T+3 to T+2 in June 2024.
It is also noteworthy to mention that the stock market has been able to attract and aggregate of Rs. 77 billion in net foreign inflows for the last 3 consecutive years with a Rs. 20 billion net inflow in 2024.
The CSE believes that the stock market remains an attractive investment option as valuations remain relatively low to peer markets with a price-to-earnings (P/E) ratio of approximately 9x, suggesting continued potential for long-term value creation.
This present environment in Sri Lanka characterised by political stability following the elections, macroeconomic reforms under the IMF program, debt restructuring, the country credit rating upgrade, low interest rates and exchange rate stability are all factors which have a positive impact on the capital market.
Year 2024 has established Sri Lanka’s stock market as a key platform for wealth and value creation for both companies and investors.
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