About Sri Lanka

Leveraging Economic Growth for a Robust Capital Market

Sri Lanka’s economy has undergone a remarkable revival, positioning its capital market as an attractive destination for investors and offering a unique opportunity to be a part of the country’s growth story. In 2024 the All Share Price Index (ASPI) and S&P SL20 received impressive returns of 49.7% and 58.5% respectively. The market also recorded a positive net inflow of USD 66.5 Mn, alongside the highest capital raised in a single year reaching USD 568.61 Mn.

The recent appointment of a new government under the National People’s Power Party, with a two-thirds parliamentary majority, has further reinforced investor confidence. This administration’s commitment to reducing state expenditure, advancing external debt restructuring, and adhering to the IMF program has bolstered Sri Lanka’s economic recovery and stock market growth. The conclusion of Sri Lanka's international bond restructuring has improved the sovereign credit rating, reducing default risk and enhancing confidence in new issuances.

Furthermore, with a market P/E of 8.89 in 2024, the Sri Lankan stock market stands out as the most attractive among its frontier market peers.

Against the backdrop of significant reforms and positive economic developments, the Sri Lankan capital market is conducive to attracting investment and creating opportunities which would be beneficial to institutional investors and fund managers from around the world.

With strong investor confidence, now is the optimal time to participate in Sri Lanka’s capital market and unlock its potential at the "Invest Sri Lanka" capital market investor forum 2025.