Sri Lanka economy: Stock market volatility and declining condominium sales

The Colombo Stock Exchange has experienced recent volatility, with the All Share Price Index (ASPI) seeing a slight decline of 0.08 percent. Market performance was notably impacted by selling pressure in the energy sector, which acted as a primary drag on broader indices. While some stocks like Citizens Development Business Finance and Overseas Realty (Ceylon) saw gains, others such as Sri Lanka Telecom and Hatton National Bank declined.

In the real estate sector, Central Bank of Sri Lanka data reveals a 6.7 percent year-on-year decline in condominium sales during the second quarter of 2026. Despite lower sales volumes, the Price Index for new condominiums in the Colombo District rose by 3.2 percent. Land and house prices also showed upward trends, increasing by 15.2 percent and 9.0 percent respectively.

Additionally, TAL Lanka Hotels has announced plans for an Extraordinary General Meeting on October 29 to seek shareholder approval for a 1.87 billion rupee rights issue. The capital is intended for bank loan repayments, refurbishing the Taj Samudra hotel in Colombo, and settling vendor liabilities.