Sri Lankan shares closed higher on Friday, aided by gains in financial and communication services stocks.

The CSE All Share index settled up 0.72% at 8,753.80, extending gains for a third straight session.

In a sign of confidence that the worst of Sri Lanka’s financial crisis is over, its central bank on Thursday cut interest rates for the first time in three years signalling a change of course to fuel a rebound in the economy.

In an address to the country on Thursday, President Ranil Wickremesinghe said Sri Lanka will work to cut government spending, boost foreign investment and create jobs as the country seeks to return to growth.

Sri Lankan shares end higher as central bank cuts rates; industrials, financials lead

On the CSE All Share index, financial service provider LOLC Finance PLC and ICT solutions provider Sri Lanka Telecom PLC were the top gainers, jumping 8.33% and 3.29%, respectively.

Trading volume fell to 43.3 million shares from 46.8 million shares in the previous session.

The equity market’s turnover fell to 738.5 million Sri Lankan rupees ($2.54 million) from 1.34 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 20.3 million rupees, while domestic investors were net buyers, purchasing shares worth 730.2 million rupees, the data showed.