The Colombo Stock Exchange extended its recovery for a third consecutive session on 29 October 2026, with strong buying momentum lifting both benchmark indices sharply higher.

The ASPI gained 296.93 points, or 1.49%, to close at 20,267.15, while the S&P SL20 advanced 81.35 points, or 1.43%, to 5,773.92. The ASPI climbed above 20,300 before midday before some profit-taking moderated gains during the afternoon.Market turnover reached LKR 2.27 billion, with 117.43 million shares traded. The Banks sector led activity with approximately LKR 658.60 million in turnover, while Commercial Bank recorded the highest individual counter turnover at LKR 176.82 million.Crossings accounted for around 29% of total equity turnover, led by Hatton National Bank with approximately LKR 375.00 million, followed by Commercial Bank and Softlogic Life.Market breadth was exceptionally strong, with 197 gainers against just 31 decliners, producing an advance-decline ratio of 6.35. Foreign investors remained marginal net sellers with an outflow of approximately LKR 21.02 million.

Distilleries was the strongest positive contributor to the ASPI, followed by Hatton National Bank, Dialog Axiata, Sunshine Holdings and Sampath Bank. LAMB.N recorded the largest negative contribution.The third consecutive gain, exceptionally strong breadth and the ASPI’s move firmly above 20,000 indicate a meaningful improvement in short-term momentum. However, afternoon profit-taking around the 20,300 area suggests this level may become an important near-term test for the recovery.