MONETABRIEF – Sri Lanka stock market has raised $430 million so far in 2026, with green bonds taking a prominent place, a forum to draw Australian based investors to the Indian Ocean island was told.

The Securities and Exchange Commission of Sri Lanka, the Colombo Stock Exchange, Port City Colombo and Sri Lanka for Victoria, South Australia and Tasmania had hosted two forum drawing around 200 participants each.

CSE Director Ray Abeywardene last year firms raised $900 million in stocks and bonds and so in 2026, $420 million had been raised including $320 million in bonds.

Of that $170 million came from ESG linked green bonds, blue bonds and other 'sustainability' linked bonds.

The Sri Lankan diaspora and Australian investors were targeted through the forums, the SEC said in a statement.

"With a significant and growing Sri Lankan diaspora, Australia remains an important market for strengthening economic and investment ties with Sri Lanka," the SEC said.

"With a large proportion of the Sri Lankan community in Victoria based in Melbourne, the city provided an important platform for engaging with the diaspora and encouraging greater participation in Sri Lanka’s economic growth through investment in the capital market."

SEC Chairman D B P H Dissabandara said Sri Lanka follows global best practices in regulation.

"So, considering this strong regulatory environment in Sri Lanka, together with the facilitation of the SEC as the regulator of the capital market, I think we can develop this market further," he said.

Sri Lankan diaspora had an important role in strengthening economic ties while encouraging greater engagement through the capital market, Pradeepa Saram, Consul General of Sri Lanka for Victoria, South Australia and Tasmania had said.

"Sri Lanka has gone through multiple turmoils, internal and external, but it has also demonstrated resilience and is now moving into a new phase of economic recovery and growth," she said.

"The return to growth is creating new possibilities, and the capital market is one avenue through which those potentials can be explored."

Sri Lanka has emerged from external default and rating agencies had upgraded the country to CCC level and is just below B-.

"My observation and expectation are that we already deserve to be upgraded, and the indicators are sufficient for us," he said.

"The opportunity is now, before the full benefit of the improving fundamentals is reflected in the market."

Over the last few weeks rating agencies confirmed the CCC+ level rating but did not upgrade citing external problems as the rupee collapsed, despite heavy taxation helping budgets turn into surplus in the first half.

Pakistan which had a stable currency, showing a better operating framework at the State Bank of Pakistan got an upgrade.

Value of Sri Lanka's stocks rose from $19.6 billion in 2024 to $26.3 million in 2025. In 2026, market cap fell to $23 million in part due to monetary depreciation. (Colombo/Aug30/2026)