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- 01Sri Lanka's All Share Price Index closed at 21,906 points on March 9, 2026, up 36.91 percent year-over-year. Treasury bill auctions show yields from 7.63 percent to 8.23 percent while major banks list one-year fixed deposits near 8.00 percent. This analysis weighs risk, recent pe
- 02Equities on the Colombo Stock Exchange Fixed-Income Securities: Treasury Bills and Bonds Bank Fixed Deposits Alternative Assets Key Comparisons The Colombo Stock Exchange All Share Price Index closed at 21,906 points on March 9, 2026.
- 03Equities have shown strong recent performance.
Method, source and disclosure
This analysis is prepared by the Market Lens desk from the sources named in the story and publicly available market information. Material revisions appear in the updated timestamp.
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- Equities on the Colombo Stock Exchange
- Fixed-Income Securities: Treasury Bills and Bonds
- Bank Fixed Deposits
- Alternative Assets
- Key Comparisons
The Colombo Stock Exchange All Share Price Index closed at 21,906 points on March 9, 2026. This level reflects a 36.91 percent gain from a year earlier despite a 3.51 percent drop in the prior session and 7.38 percent monthly decline.
With the Central Bank of Sri Lanka maintaining its policy rate at 7.75 percent and domestic growth forecasts between 4 and 5 percent, investors weigh multiple avenues for capital allocation.
Equities on the Colombo Stock Exchange
Equities have shown strong recent performance. Market capitalization reached record levels earlier in 2026, helped by macroeconomic stabilisation following IMF reviews.
Volatility persists, as monthly swings demonstrate. Liquidity remains high for actively traded shares on the CSE, enabling relatively quick position adjustments.
Corporate earnings growth drives longer-term potential, yet external factors can shift valuations rapidly.
Fixed-Income Securities: Treasury Bills and Bonds
Treasury bills offer low-risk government-backed returns. Early March 2026 auctions produced weighted average yields of 7.63 percent for three-month bills and 8.23 percent for 12-month bills.
Longer treasury bonds traded at 9.50 percent to 10.88 percent in recent secondary activity. These securities provide high liquidity through regular auctions and tap facilities.
Regular issuance matches investor demand while supporting fiscal needs.
Bank Fixed Deposits
Commercial banks list fixed deposit rates close to prevailing policy levels. At Commercial Bank of Sri Lanka, one-year deposits pay up to 8.00 percent at maturity, or 8.25 percent for qualifying digital placements.
Longer tenures reach 9.50 percent or higher for 24 months depending on payout terms. Early withdrawal penalties limit liquidity relative to tradable securities.
These products suit capital preservation goals in a low-inflation setting near 5 percent.
Alternative Assets
Gold functions as an inflation hedge amid global price strength. Local buyers face transaction and storage costs but gain diversification benefits.
Real estate ties to post-cyclone reconstruction and gradual market recovery. Rental yields stay modest, and illiquidity characterises both segments.
Allocation here hinges on individual horizons and tolerance for sector-specific risks.
Key Comparisons
Key characteristics clarify trade-offs across choices.
| Option | Risk | Recent Yield/Return | Liquidity |
|---|---|---|---|
| Equities (CSE) | High | Variable (+36.91% yoy) | High |
| Treasury Bills | Low | 7.63–8.23% | High |
| Fixed Deposits | Low | 7.5–8.0% (1-year typical) | Medium |
| Alternatives (Gold/Property) | Medium | Variable | Low |
Data drawn from March 2026 auctions, bank listings and exchange reports.
Portfolio construction ultimately weighs these factors against personal objectives. This assessment would shift if inflation exceeds central bank targets or external financing conditions tighten sharply.