Sri Lankan shares closed higher on Wednesday, supported by gains in industrial and consumer staples stocks.

The CSE All-Share index closed 0.31% higher at 8,293.50, snapping a four-day losing streak, exchange data showed.

Sri Lanka’s central bank (CBSL) on Wednesday said the economy has shown signs of stability in the second half of the year thus far, and that it expects the economy to transition into recovery from the latter part of 2023.

The CBSL, however, said the expected near-term recovery of the economy is “fraught with many challenges” due to the unprecedented scale of the economic crisis, and uncertainties which may require swift policy actions.

Conglomerate John Keells Holdings PLC and food and beverage company Cargills (Ceylon) PLC were the top boosts on Wednesday, rising 2.6% and 5.9%, respectively.

Sri Lankan shares drop most in a month as industrials slide

Trading volume on the CSE All-Share index rose to 39.3 million shares from 46.5 million in the previous session.

The equity market’s turnover was 831.3 million Sri Lankan rupees ($2.29 million), according to exchange data.

Foreign investors were net buyers in the equity market, purchasing 68.2 million rupees of shares, while domestic investors were net sellers, offloading stocks worth 822.9 million rupees, data showed.