News & market updates

Hatton National Bank (HNB) saw 45,317,177 shares transferred at Rs.305 each to Ceylon Steel, generating Rs.13.82bn (Rs.14.42bn total HNB turnover) and helping lift CSE turnover to Rs.18.7bn; HNB closed at Rs.319.50, up 5.71%.

Ceylon Steel bought a 9.99% stake in Hatton National Bank (45,317,177 shares) from Browns Investments at Rs.305 per share, a Rs.13.82bn transaction. Capital Alliance Securities acted as broker for the buyer/seller and the deal pushed market turnover past Rs.17bn early in the day.

Browns Investments sold its entire 9.99% stake in Hatton National Bank — 45.3m shares crossed at Rs.305 for Rs.13.82bn. Capital Alliance Securities brokered the buyer and facilitated 60% of the trade, which pushed market turnover past Rs.15bn in the first two hours.

CBSL cut the Overnight Policy Rate by 25 bps, after which secondary bond yields fell across maturities and yields shifted lower; a Rs.157.50bn T‑Bill auction was fully subscribed. Foreign holdings in rupee treasuries rose by Rs.0.55bn and the rupee closed near Rs.299.45.

WealthTrust Securities: Secondary bond yields were broadly steady with short-tenors easing and profit-taking lifting 2028-29 yields ahead of a Rs.80.00 billion Treasury Bond auction (Rs.35bn 15-Oct-2029 at 10.35% and Rs.45bn 01-Nov-2032 at 9.00%) settling 15 May.

Fitch affirmed Capital Alliance Investment Grade Fund’s National Fund Credit Quality Rating at 'BBf(lka)' and Market Risk Sensitivity at 'S4(lka)'; the fund size rose to about LKR55 billion at end‑March 2025. Fitch said the fund has a WARF of 5.2 and moderate-to-high sensitivity to interest-rate and spread risk (WAM 9 months, WAL 16 months).

Sanura Silva was appointed CEO of Capital Alliance PLC, replacing Ajith Fernando who will remain a non-executive director. Silva, who leads the company's trading team and is a registered investment advisor and fixed-income trader, was named in an exchange filing and the stock traded at Rs 54.90 mid-morning.

ASPI rose 33 points (0.2%) as turnover hit Rs.1.9 billion, led by crossings in Hatton National Bank, Commercial Bank and CIC Holdings; banking stocks were the main drivers while materials also saw heavy trading.

Capital Alliance listed nearly 915 million units of its 'CAL Five Year Closed End Fund' on the Colombo Stock Exchange by way of an introduction. Hatton National Bank is trustee and custodian; the five-year fixed-income unit trust will trade on the CSE at NAV or at a premium/discount and targets capital preservation and interest income.

Capital Alliance Investments Ltd listed 914,925,446 units of the 'CAL Five Year Closed End Fund' on the Colombo Stock Exchange by way of introduction. Hatton National Bank PLC is the trustee and custodian; the SEC‑approved five-year fixed‑income fund targets capital preservation and interest income.

CSSL held the National CIO Forum 2025 and unveiled the CSSL National CIO List 2024, inducting six CIOs including representatives from L B Finance (LFIN.N0000), Lion Brewery (LION.N0000) and Capital Alliance (CALT.N0000). Panels covered CIO leadership, cyber security, AI, ERP modernisation and workforce transformation.

CFA Society Sri Lanka honoured the top 25 employers supporting CFA charterholders and candidates. Recognised local listed firms include John Keells, Hayleys, DFCC Bank, Hatton National Bank, Hemas, Commercial Bank and Capital Alliance.

Lankan Angel Network appointed PromoLanka CEO Adil Mansoor as 2025 Board Chairman and announced plans for Fund II after deploying Fund I (Rs.100 million into six start-ups). Capital Alliance CEO Nishok Goonasekera joined the board and HNB supported the event.

Treasury Bond auctions were fully subscribed, raising Rs.67.50 billion with strong demand (bids 2.75x) and key maturities issued below expectations (01.09.28 at 10.31%, 15.10.30 at 11.23%). Secondary bond market rallied, yields fell and USD/LKR appreciated to Rs.295.90/296.20.

Capital Alliance launched an online vehicle-import tax calculator to estimate CIF-based import costs using exchange rate, engine capacity, luxury/EV taxes and fuel type. The tool follows a government gazette that imposed a 50% import-duty surcharge and new taxes on electric vehicles.

Asia Asset Finance PLC launched Sri Lanka's first digitally subscribed debenture (Debenture Issue 2024), fully subscribed on day one with an initial Rs.1 billion and an option to expand to Rs.2 billion. Proceeds will expand AAF's loan portfolio; the issue was managed via the CAL Web Portal by Capital Alliance Partners Ltd and rated A+(lka) by Fitch.

Asia Asset Finance PLC (AAF) launched Sri Lanka’s first digitally subscribed debenture — an initial LKR 1 billion issue (up to LKR 2 billion with oversubscription) — which was fully subscribed on the first day. The listed, Fitch‑rated unsecured senior redeemable debentures have 3- and 5-year tenures and proceeds will expand AAF's loan portfolio; the issue was managed via Capital Alliance Partners Ltd.

Secondary bond yields declined and the Rs.185b weekly T-bill auction was fully subscribed; weighted average rates were 91-day 8.66%, 182-day 8.81% and 364-day 9.02%. The USD/LKR depreciated to Rs.291.55/291.85 and secondary bond/bill volume was Rs.20.62b.

Colombo Stock Exchange closed higher: ASPI rose 2.08% to 14,500 and S&P SL20 rose 2.48% to 4,349 on Dec 16, 2024, with turnover of 8.2 billion. Top turnover generators included Ceylinco, John Keells, Sampath, HNB and Pan Asia; banking stocks rose after the ISB announcement and net foreign inflow was Rs 100 million.

Asia Asset Finance plans to raise up to Rs2 billion by issuing 20 million debentures at Rs100 each, initially issuing 10 million to raise Rs1 billion with an option for a further 10 million on oversubscription. The CSE has approved listing in principle; subscription opens Dec 11 and Capital Alliance Partners are managers.

Secondary Treasury yields saw intraday swings—15.10.27 and 01.05.28 fell to lows of 10.07% and 10.45% before rising to highs of 10.15% and 10.60%; total secondary Treasury turnover was Rs.70.35bn. Money-market rates were around 8.17%–8.32%, CB net liquidity surplus Rs.221.89bn and USD/LKR marginally appreciated to 290.30/290.40.

Hayleys PLC and John Keells Holdings are platinum sponsors of CA Sri Lanka's 45th National Conference, held 14–16 October. Other shortlist companies sponsoring the event include Nations Trust Bank (exclusive banking partner), Nawaloka Hospitals PLC (exclusive healthcare partner), LB Finance, Capital Alliance, DIMO, Sunshine, C. W. Mackie and Lanka IOC.

Digital Mobility Solutions Lanka (PickMe) IPO of 43.47M ordinary shares at Rs.36 was fully oversubscribed on the opening day, targeting about Rs.1.5 billion. Advisors include CT CLSA Capital (Pvt) Ltd and Capital Alliance Partners Limited.

Digital Mobility Solutions Lanka (PickMe) will list on the Colombo Stock Exchange with shareholders selling 43.34 million shares at Rs36 to raise about Rs1.5bn; the offer opens Sept 13 and the prospectus will be available on the CSE website from Sept 3.

Capital Alliance PLC (CALT.N0000) opened a new Client Experience Centre at Jetwing House and hosted a successful Open Day on 3 August 2024 to meet clients, showcase products and facilitate account openings.