Sri Lankan stocks ended higher on Wednesday after the head of the government's peace secretariat met his Tamil rebel counterpart, prompting hopes for a restart to the stalled peace process, brokers said.
The key Colombo all-share index closed up 0.97 percent, or 13.51 points, at 1,409.82, less than 15 points off its life closing high of 1,423.52 hit last October.
The Milanka index - which tracks the more liquid and highly capitalised stocks - ended up 0.26 percent, or 5.41 points, at 2,115.83.
Total turnover was 320.7 million rupees with foreign sales of 24 million rupees and foreign purchases of 22 million rupees.
"In addition to the market closing higher yesterday (Tuesday), good news on the peace process encouraged investors today," said one broker.
A Norwegian brokered peace process to end the 21-year-old war stalled in April last year with the government and Tigers divided over the agenda for resuming talks.
Activated carbon exporter Haycarb Ltd rose 13.77 percent to 47.50 rupees on foreign buying of 10 million rupees worth of shares.