The Colombo Stock Exchange (CSE) ended 2024 with a record-breaking market capitalisation of Rs. 5.69 trillion, a 34% increase from the previous year, providing a remarkable 50% return to long-term investors. The benchmark All Share Price Index (ASPI) rose 49.66%, closing at an all-time high of 15,944.61, while the S&P SL20 surged 58.46%, reaching 4,862.10. These achievements, reported by Daily FT, mark the sixth consecutive year of growth for the CSE, despite challenges from past political, economic, and health crises.
The market’s bullish performance was driven by political stability following the 2024 elections, progress under the IMF’s Extended Fund Facility, and improved macroeconomic fundamentals, including low interest rates and a stable exchange rate. Key contributors included the banking, capital goods, and diversified financial sectors, with the banking sector accounting for 47% of total turnover.
Stocks like Hatton National Bank, Commercial Bank, and DFCC Bank led market gains, supported by heightened retail and institutional investor participation. Average daily turnover reached Rs. 2.23 billion, boosted by strong performances in the final quarter. Analysts highlighted the importance of reforms and economic progress in maintaining the CSE’s growth trajectory, with tourism and export sectors offering additional optimism for 2025.
