News & market updates

Colombo stocks closed flat with the ASPI up 0.01% at 21,132.12 and market turnover of Rs 1.41 billion; banks led turnover at Rs 411.6 million and Food, Beverage & Tobacco followed with Rs 308.7 million. Notable movers included Melstacorp, HNB, Pan Asia, Central Finance and Aitken Spence; Lanka Realty Investments disclosed an Rs 800m related-party loan settlement.

Lanka Realty Investments PLC (ASCO.N0000) sold its 50.88% controlling stake in On'ally Holdings PLC (ONAL.N0000) to Lee Hedges PLC (SHAW.N0000) for about Rs.2.26 billion, unlocking capital and an estimated separate-company gain of ≈Rs.834.09m before costs. Lee Hedges gains Unity Plaza, boosting recurring rental income and scale.

Colombo Stock Exchange traded higher Thursday morning, with the ASPI up 29.70 points (0.14%) to 21,447.50 and market turnover of LKR 229 million, led by banks (LKR 74.9 million). Lanka Realty Investments received LKR 1.05 billion from Lee Hedges for the final balance on its 51% stake sale, and Asia Asset Finance announced a LKR 0.70 fixed non‑cumulative preference dividend per share.

Colombo bourse finished the week higher, with the ASPI up 0.21% and the S&P SL20 up 0.51%; yesterday ASPI closed at 22,409.81 and the S&P SL20 at 6,247.42. Turnover topped Rs.1.9bn with foreign net inflow of Rs.9.3m; COCR, PKME and SIL led turnover while ACL fell and Hayleys, HNB Finance, Lanka Realty and CIC posted gains.

Lee Hedges PLC revised payment terms for its Rs.3.16 billion acquisition of Lanka Realty Developments, making an initial Rs.1.1bn payment and deferring Rs.2.06bn payable within six months at AWPLR+1.5%. Vendors transferred their LRD shares on receipt of the initial payment and Lee Hedges will own 100% on completion.

Lee Hedges PLC appointed Archie Warman as Chairman and Afzal Ahamed Marikar and Noel Joseph as Independent Non-Executive Directors after Lanka Realty Investments acquired a 51% stake (and Eighth Wonder 20.48%) at Rs.216 per share in January.

Colombo Stock Exchange trended up, with the ASPI rising 0.27% (61.12 pts) to 22,314.64 on turnover of Rs.609.9m, led by capital goods (Rs.241.2m). Lee Hedges announced revised payment terms for its Rs.3.15bn acquisition of Lanka Realty Developments (Rs.1.1bn paid, Rs.2.057bn due within six months plus interest).

Colombo market rose for a second session as the ASPI gained 0.22% to 22,436.14 on turnover above Rs.3.1bn, driven by elevated HNW activity with PKME, Dialog and NDB among top contributors; foreigners were net sellers of Rs.333.3m.

Lanka Realty Investments (ASCO.N0000) reported FY26 pre-tax profit of Rs.2.92 bn, total assets of Rs.29.7 bn and NAV per share of Rs.51.40, driven by fair value gains and a value-accretive 51% acquisition of Lee Hedges; the enlarged portfolio and lower LTV support stronger recurring income.

Colombo Stock Exchange rose as the ASPI gained 0.72% (162.12 pts) to 22,746 and the S&P SL20 was up 0.51% to 6,244, with turnover of 2 billion rupees. Top contributors included John Keells, Melstacorp and Lanka Realty while DFCC and Carson Cumberbatch lagged; Equity Two declared a 4.41 rupee dividend.

Lanka Realty Investments PLC (ASCO.N0000) will sell a 51% stake in subsidiary Lanka Realty Developments Ltd to group unit Lee Hedges PLC (SHAW.N0000) for Rs.1,610,334,180, with at least Rs.800m earmarked to partly settle a Rs.1,453.5m related-party loan. The transaction is subject to Lee Hedges shareholder approval and is expected to realise a disposal gain and improve liquidity for Lanka Realty.

Lee Hedges PLC will acquire 100% of Lanka Realty Developments for Rs.3,157,518,000 in a two-part transaction (Rs.1,610,334,180 from Lanka Realty Investments and Rs.1,547,183,820 from Eighth Wonder). The deal is classified as a related-party transaction and is subject to shareholder approval.

Colombo Stock Exchange closed up Friday with the ASPI +1.85% at 20,639.73, though the market is down 4.85% from last Friday. Turnover was Rs.4.39bn led by capital goods; top contributors included Sampath Bank, Hayleys, Colombo Dockyard, Melstacorp and John Keells, and Lanka Realty Investments said it will sell 57,204,262 shares to subsidiary Lee Hedges.

Lee Hedges PLC appointed Hisham Jamaldeen and Archie Warman as Non-Independent Executive Directors. Both have 20+ years in corporate finance and real estate and hold directorships at On'ally Holdings and Lanka Realty Investments; Jamaldeen has also served at Hayleys PLC.