Colombo Stock Exchange sees surge in foreign net outflows

Foreign investors have significantly increased their selling activity on the Colombo Stock Exchange (CSE), with net outflows reaching Rs. 55.7 billion during the first eight months of 2026. This figure represents more than double the Rs. 22.34 billion recorded during the same period last year.

Data indicates a widening gap between selling and buying; foreign investors sold approximately Rs. 85.3 billion worth of shares while purchases declined by 19 percent to roughly Rs. 29.6 billion. August 2026 saw the largest monthly net foreign outflow on record, totaling approximately Rs. 19.46 billion.

While the selling has been broad-based, certain transactions have heavily influenced the totals. In August, three specific counters—Commercial Credit and Finance, Cargills, and RIL Property—accounted for roughly 84 percent of the net foreign selling. On a single trading day in early September, outflows reached LKR 612.5 million, contributing to a year-to-date cumulative net outflow exceeding LKR 56 billion. Despite the heavy foreign selling, the market indices actually advanced during August, supported by local Sri Lankan investors.