PE of the market has to be in line with the growth of economy, just like standalone PE is symbol of expectation about particular company's future growth and return on its reinvested profits. You can not think of 16+ PE for Colombo any longer.
Banks PE is not a good indicator. SL is hitting the bottom of its investment cycle. if you have observed would realized that both banks & investment companies have reported high increase in provision for last 4 quarters. this means that NPL is running high with deceleration of growth. More over, CBSL is also usually badly managed , putting lots of unnecessary strain on SL banks specially in bad times.
What is best for banks PBV while earning & its growth also should be loking at carefully. on PBV terms, only HNB NV is trading in sensible range.COMB usually trades above the market, but keep in mind its not the same COMB that we had usually. It's run by relatively immature board and GOSL influence also should be factored. Hence moderate premium should be justified. HNB after capital gains from share sale( if they dont payout entirely) trades at attractive PBV, but this is due to one off factors, still worth at current price. Possibly, its the only bank trades below its NPV ( after the sale).
Sampath has catch up with rest of other and you see the growth has stalled.
This is NOT recommendation, on this terms most attractive is NDB & HNB NV.