The Colombo Stock Exchange ended Thursday trading in negative territory, with the benchmark index declining 0.38 percent, while the broader economy showed signs of resilience through customs revenue growth and central bank deposit insurance payouts.
Sri Lanka's equity markets closed lower on Thursday, with the All Share Price Index falling 80.43 points to 21,148.71, representing a 0.38 percent decline. The more liquid S&P SL20 index also retreated, dropping 0.33 percent to 5,941.98. Despite the overall downturn, several stocks posted gains, including Carson Cumberbatch, which rose 3 percent, and Sampath Bank, which edged up 0.37 percent. Declines were led by Aitken Spence, which fell 4.14 percent, and Commercial Bank of Ceylon, which dropped 0.49 percent. Market turnover reached 1.094 billion rupees, with capital goods accounting for 389 million rupees of trading activity.
In corporate developments, Bogala Graphite Lanka underwent an indirect change of control following the transfer of shares in its parent company Graphit Kropfmühl GmbH by AMG Critical Materials to Asbury Advanced Materials Group. The company's shares closed down 2.01 percent. Meanwhile, Lankem Ceylon disclosed a 500 million rupee corporate guarantee on behalf of its subsidiary Lankem Minerals Limited, with shares of Lankem Ceylon rising 5.23 percent.
On the financial sector front, Fitch Ratings affirmed People's Insurance PLC's National Insurer Financial Strength Rating at 'A(lka)' with a Stable Outlook. The affirmation reflects the insurer's adequate regulatory capital position, though Fitch noted that the company's risk-based capital ratio declined to 246 percent by end-2025 from 389 percent previously, citing concentration risks from deposits with finance companies. The rating agency also highlighted that underwriting performance weakened, with the combined ratio rising to 112 percent in 2025.
Moreanwhile, the Central Bank of Sri Lanka announced it will commence compensation payments to insured depositors of Nation Lanka Finance PLC from August 1, following the cancellation of the company's finance business licence on July 3. Payments, capped at 1.1 million rupees per depositor, will be processed through People's Bank branches and by creditors or new account openings. The rupee strengthened slightly on Thursday, trading at 335.95/336.05 to the US dollar, while government bond yields remained broadly stable across various maturity tenors.
