Sri Lankan shares closed down on Friday, snapping a three-day rally as financial companies fell, but the main index recorded its third straight weekly gain.

The CSE All-Share index ended 0.21% lower at 9,316.65 points. For the week, the index gained 4.31%.

Conglomerate Lanka Orix Leasing Company Plc was the top drag on the index, ending down 1.7%.

The island country said it would bring in new laws to deter hoarding and increase penalties on traders to tackle food shortages caused largely by the country's deteriorating forex reserves.

Sri Lanka, which is facing a massive debt repayment crisis, on Thursday called for proposals for foreign currency term-financing facility.

Sri Lankan shares end at record high as financials, industrial stocks gain

Domestic COVID-19 cases rose by 3,627 in the last 24 hours, taking the total to 447,757, even as the island-nation remains under a lockdown.

Sri Lanka reported 204 fatalities due to COVID-19 in the last 24 hours, bringing the death toll to 9,604.

Data from Johns Hopkins University showed the country has fully vaccinated 39.36% of its population so far.

Thirty-seven stocks hit fresh highs, while 27 hit new lows on the main exchange, according to Refinitiv Eikon data.