The GDP Growth Rate is a key indicator of Sri Lanka's economic health, and it has a significant positive impact on the Sri Lankan stock market in a few ways:

• Corporate Earnings Growth: A growing economy typically translates to better performance for companies. As the economy expands, businesses tend to experience higher sales and profits. This can lead to increased earnings per share (EPS), a key metric that investors use to value stocks. Higher EPS generally translates to higher stock prices.

• Investor Confidence: A strong and growing GDP instills confidence in investors. They become more optimistic about the future prospects of companies operating in a healthy economy. This optimism can lead to increased investment activity in the stock market, driving up stock prices.

• Company Valuations: When the GDP grows, companies are generally perceived as having more growth potential. This can lead to investors applying higher valuation multiples to their stocks, further boosting their prices.