Colombo bourse ranks among top 10 emerging markets

The Colombo Stock Exchange (CSE) has ranked among the top ten best-performing emerging market equity indices globally, based on its performance over the last year. 

According to data from Bloomberg, the All Share Price Index (ASPI) recorded a year-on-year total return of 54.29 percent in US dollar terms as of the market close on June 27, 2025, placing it ninth in the emerging markets category.

The index’s growth is linked to improving economic stability in Sri Lanka, which has supported a recovery in corporate earnings and business sentiment through the first half of 2025.

Market analysts connect the upward trend to the completion of Sri Lanka’s International Sovereign Bond (ISB) restructuring in late 2024. The event is widely seen as a significant milestone in the country’s economic recovery framework, which helped reduce uncertainty for foreign and local investors.

The banking sector has been a notable contributor to the index’s performance. In the context of a more stable economic environment and following the debt restructuring, many listed banks have reported strong earnings, leading to capital gains and higher dividend yields for shareholders.

The ASPI’s performance, which places it ahead of many regional peers in the Bloomberg rankings, is being interpreted by market observers as a sign of returning investor confidence in Sri Lanka’s ongoing economic recovery.