Sri Lankan shares closed higher on Friday, registering their best week in three-and-a-half months, lifted by gains in energy and financial stocks.

The CSE All-Share index rose 7.63% through the week to 8,769.73, registering its best week since the second week of August.

The index closed 0.76% higher on the day at an over five-week high. On Thursday, the index notched a 0.61% gain, recording its best day in nearly five weeks.

Fitch late on Thursday downgraded Sri Lanka’s Long-Term local-currency debt rating by two notches to “CC” from “CCC”, citing a probable local-currency debt default in the face of high interest costs and tight domestic financing conditions.

Petroleum products supplier Lanka IOC PLC and lender Sampath Bank PLC were the biggest boosts to the CSE All-Share index, rising 5.3% and 7.5%, respectively.

Trading volume dropped to 126.1 million shares from 176.6 million in the previous session.

Sri Lankan shares gain for fifth day as inflation eases

The equity market’s turnover rose to 4.01 billion Sri Lankan rupees ($11.05 million), compared with 3.11 billion rupees in the previous session, according to exchange data.

Foreign investors were net buyers in the equity market, purchasing stocks worth 1.22 billion rupees, while domestic investors were net sellers, offloading 3.84 billion rupees of shares, data showed.