Sri Lankan shares settled higher for a second consecutive session on Wednesday, lifted by gains in industrial and financial stocks.

The CSE All-Share index settled 0.99% higher at 9,958.87.

The index has fallen about 18% this year as the island nation suffers its worst economic crisis in more than seven decades, but is on track for a third straight month of gains with the International Monetary Fund expected to approve a $2.9 billion loan by year-end.

Conglomerate Vallibel One Plc and cigarettes manufacturer Ceylon Tobacco Co Plc were the top gainers, rising 7.6% and 2.5%, respectively.

Trading volume on the CSE All-Share index rose to 181.1 million shares on Wednesday from 118.5 million in the previous session.

Sri Lankan shares edge up as financials rise

The equity market turnover was 3.13 billion Sri Lankan rupees ($8.7 million), compared with 5.86 billion rupees in the previous session, according to exchange data.

Foreign investors were net buyers in the equity market, purchasing 71.9 million rupees worth of shares, while domestic investors were net sellers, offloading 3.08 billion rupees worth of stocks, data showed.