Colombo bourse rallies as foreign inflows return

The Colombo Stock Exchange has rallied in recent sessions as foreign investors return to Sri Lankan equities, encouraged by a calmer political backdrop and inflation now running near the central bank’s target.

Confidence rebuilding

Year-on-year GDP growth reached between 4.9% and 5.4% across the middle quarters of last year, while core inflation fell to around 2.4% by late 2025 — a backdrop that has steadied sentiment.

Brokers caution that the rally remains sensitive to global energy prices and the pace of IMF-linked reforms.