Sri Lanka's Colombo Stock Exchange (CSE) has recorded over Rs. 25 billion in net foreign outflows from the beginning of the year through April (YTD), while total net outflow within the month of April alone was Rs. 5.3 billion, according to Ambeon Securities' monthly report for April.

Describing capital market performance, the report stated: "Total net foreign outflow for April 2026 was Rs. -5,330.78 million. Year-to-date net foreign flow is Rs.  -25,130.94 million."

The report also noted that despite the all share price index (ASPI) rally seen across sectors, overall trading activity contracted during the month, as daily average turnover declined by 22% to Rs. 3.6 billion, while average daily share volumes declined by 21% to 175 million.

"Daily average turnover decreased by 22% M-o-M to Rs. 3,655 million. Daily average volume decreased by 21% M-o-M to 175 million."

During the month, the ASPI gained 6.78% and the S&P SL20 gained 5.65%, with all 20 sectors ending the month seeing increases. The healthcare equipment and services sector recorded the highest increase of 24.54%.

In terms of price-to-earnings (P/E) ratio, aside from the Karachi and Dhaka stock exchange indices, Sri Lanka's ASPI P/E ratio remains the cheapest within the region, with a value of 11.3.

In other economic indicators, Sri Lanka's tourist arrivals fell by 22% compared to the same period last year. "Tourist arrivals dropped 22.3% Y-o-Y to 135,643 – the lowest since May 2025 and second consecutive yearly decline."

Sri Lanka's tourism earnings dropped by 36.8% in the same year-on-year period to $ 223.7 million, as earnings per tourist fell by 21.2% year-on-year to $ 1,215.9, the report noted.

In terms of the country's current account, Sri Lanka's trade deficit widened to USD 879.8 million, recording a 122.4% year-on-year increase, and a 13.4% monthly increase. Import expenditure also increased by 30.3% year-on-year within April, the report noted.

During the month, Sri Lanka's export growth also stagnated by 1% on year-on-year terms, widening the external imbalance. "Export earnings marginally increased to $ 1,254.3 million."

Inflation expectations for the month surpassed the Central Bank of Sri Lanka's target, with the transport sector in particular seeing the most notable rise. "Headline inflation accelerated to 5.4% in April 2026 from 2.2% in March 2026, surpassing CBSL target."

"The transport sector recorded the highest inflation at 11.6% Y-o-Y in April 2026, compared to 0.8% Y-o-Y in March 2026."

"Non-food inflation accelerated sharply to 6.8% in April 2026 from 2.9% in March 2026."