Positive sentiment post-Budget 2026 drives CSE above 23,500 points

Tuesday, 11 November 2025 03:06 - - {{hitsCtrl.values.hits}}

The Colombo stock market began the week with strong upward momentum yesterday with the benchmark index crossing 23,500 points for the very first time driven by positive sentiments after Friday’s 2026 Budget speech delivered by President and Finance Minister Anura Kumara Dissanayake.

First Capital Research said investor sentiment remained buoyant, particularly towards counters that received favourable outcomes from the National Budget reading.

The ASPI closed 0.70% higher gaining 164.34 points to 23,502.59 and the active S&P SL20 index closed 1.86% up, gaining 118.5 points to 6,500.04. Market turnover was over Rs. 7.5 billion on nearly 253 million shares traded and foreigners were net sellers with a net outflow of Rs. 434.1 million.

First Capital Research noted that Retail participation remained elevated, while HNW activity continued at a moderate pace.

The Banking sector was the main driver of market gains, with HNB, SAMP, COMB, NDB, and DIAL emerging as key positive contributors to the index.

The Capital Goods sector dominated activity, accounting for 25% of total turnover, followed by the Banking and Food, Beverage and Tobacco sectors, which collectively contributed 34%.

In a review of the 2026 Budget, First Capital noted that several proposals would benefit banks by generating demand for loans.

Several Government-backed loan schemes have been introduced to support small and medium enterprises (SMEs) through concessional financing. Credit guarantees are to be provided for SME loans amounting to around Rs. 7 billion, supported by a $50 million facility from the Asian Development Bank.

An allocation of Rs. 25 billion has been made to extend loans at concessional interest rates of up to Rs. 25 million for successful businesses and up to Rs. 15 million for enterprises facing economic difficulties, aimed at meeting working capital and investment needs. In addition, Rs. 5.9 billion has been allocated for loans of up to Rs. 50 million to SMEs.

A new initiative under the SME Development Loan Scheme has also been launched, with Rs. 7.7 billion earmarked to provide fresh loans of up to Rs. 50 million at concessional interest rates.