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Sri Lankan shares closed higher on Tuesday, aided by consumer staples and financials stocks.

The CSE All-Share index settled 0.22% higher at 17,193.79.

Kotmale Holdings Plc and Commercial Development Company Plc were the top gainers on the index, up 9% and 6.9%, respectively.

Sri Lanka’s budgeted expenditure for 2025 will likely lead to a wider fiscal deficit and slower-than-expected fiscal consolidation, Moody’s Ratings said on Tuesday, a day after the island nation unveiled its budget.

“The budget underscores the challenge that Sri Lanka’s fiscal authorities will continue to face because of its still weak debt affordability, still narrow revenue base, and underlying social constraints,” said Christian Fang, vice president - senior analyst at Moody’s Ratings.

Sri Lanka shares end higher as communication services, financials gain

Trading volume on the CSE All-Share index rose to 166.5 million shares from 133 million shares in the previous session.

The equity market’s turnover rose to 5.50 billion Sri Lankan rupees ($18.56 million) from 5.41 billion rupees in the previous session, according to exchange data.

Foreign investors were net sellers, offloading stocks worth 296.6 million rupees, while domestic investors were net buyers, purchasing shares worth 5.29 billion rupees, the data showed.

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