Sri Lankan shares reversed from steep early losses to settle higher on Wednesday as industrial and material stocks advanced.

The benchmark stock index ended 0.10% higher at 7,588.34, having slumped as much as 2.57% earlier. The index has shed 5.1% over the last two sessions.

Activated carbon manufacturer Haycarb advanced 16.4% to be the biggest boost to the index, followed by a 5% gain in conglomerate ExpoLanka Holdings

Trading volume on the CSE All Share Index fell to 113.7 million, from 117.4 million in the previous session.

Foreign investors were net sellers, off-loading 201.1 million Sri Lankan rupees ($1.03 million) worth of shares, according to exchange data.

Equity market turnover was 3.31 billion Sri Lankan rupees, data showed.

The Sri Lankan rupee was last quoted at 195.50 against the US dollar, as of 1106 GMT.