Sri Lanka is transitioning into a growth phase, as highlighted by positive macro projections. We anticipate earnings growth among listed companies, making forward valuations attractive. With political stability and a sovereign ratings upgrade, equities are poised for higher valuations and improved sentiment. As interest rates decline and economic conditions recover, we expect the market to re-rate to a PE of 11.0x, its 10-year historical average. Based on 2025E earnings projections we have arrived at an ASPI fair value of 18,750 and 22,000 based on 2026E earnings at a justified PE of 11x (10-year historical market PE 11.1x, regional market average PE 14.8x).