Phoenix rising: How Colombo Stock Exchange symbolises nation’s remarkable resurrection

TO truly understand the story of a nation, one need not look further than the pulse of its stock exchange. It is a living, breathing entity that discounts the future, processes the present, and is invariably haunted by the ghosts of the past. For 16 tumultuous years, the Colombo Stock Exchange (CSE) has been the most honest narrator of Sri Lanka’s modern saga—a tale of euphoric triumph, devastating despair and now become the forward barometer of Sri Lanka’s economic rebirth.

- By Imtiaz Buhardeen

In exactly one year since the Presidential elections, the ASPI has gained more than 90%, gaining 10,119 points from 10,966 to 21,085 as of 19 September 2025.

Market capitalisation has grown by 85% from Rs. 4.045 trillion to Rs. 7.479 trillion. This 3.434 trillion in wealth creation in one year, in USD terms is $ 11.4 billion, which works out to be almost four times the total bailout package by the IMF which is paid out in four years.

Listed companies have cumulatively brought in profits of 800 billion for the last four quarters as well.

But these numbers, impressive as they are, represent more than a rally. They signal a country positioning itself for the most decisive transformation in its modern history.

What lies ahead is even more consequential. With the IMF program giving us much needed discipline, stability and relief, we have come out strong out of one of Sri Lanka’s worst financial crisis. Ensuring we carry on with these reforms and turning stability into growth is what we need to ensure going forward.

A recovery built on discipline

Sri Lanka’s present market rally cannot be understood without recalling the depths of the 2020-2023 collapse. Years of populist fiscal policies, mounting debt, and policy missteps culminated in sovereign default, currency freefall, and inflation peaking near 70%. The ASPI lost more than 80% of its value in dollar terms, foreign investors fled, and public confidence evaporated.