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Sri Lankan shares closed higher on Monday, aided by gains in consumer staples and industrials stocks.

The CSE All Share index settled up 0.15% at 8,766.60, extending gains for a fourth straight session.

Sri Lanka’s central bank is likely to continue to ease monetary policy, following a 250 basis-point rate cut on Thursday, as it tries to boost economic growth and lower borrowing costs for the government in the crisis-hit economy.

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

On the CSE All Share index, Carson Cumberbatch Plc and Browns Investments Plc were the top gainers, jumping 10.7% and 3.6%, respectively.

Sri Lankan shares end higher as financials, communication services lead

Trading volume fell to 31.4 million shares from 43.3 million shares in the previous session.

The equity market’s turnover fell to 710.4 million Sri Lankan rupees ($2.45 million) from 738.5 million rupees in the previous session, according to exchange data.

Foreign investors were net buyers, purchasing stocks worth 12.5 million rupees, while domestic investors were net sellers, offloading shares worth 701.9 million rupees, the data showed.

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