Sri Lankan shares closed lower on Tuesday, dragged down by losses in financial and consumer staple stocks, although gains in communication services capped further decline.

The CSE All Share index settled down 0.24% at 9,159.53 rupees.

Sri Lanka plans to spend $680 million per year on a welfare programme for 2.3 million of its poor people starting July, an official said on Tuesday, its first such move after securing an IMF bailout in March.

On the CSE All Share index, Sampath Bank Plc and Cargills (Ceylon) Plc were the top losers, falling 2.6% and 1.7%, respectively.

Sri Lanka Telecom Plc and Dialog Axiata Plc were among the top gainers in the index, rising 4.4% and 3%, respectively.

Sri Lankan shares closed lower as financials, industrials fall

Trading volume rose to 56.1 million shares from 29.9 million shares in the previous session.

The equity market’s turnover rose to 923.3 million Sri Lankan rupees ($3 mln) from 580 million rupees in the previous session, according to exchange data.

Foreign investors were net buyers in the equity market purchasing shares worth 73.7 million rupees while domestic investors were net sellers, offloading shares worth 918.8 million rupees, the data showed.