The Colombo Stock Exchange's main index rose 0.32 percent or 17.46 points at 5,404.86, its highest close since Nov. 26.
Foreign buying accounted for 82.3 percent of the day's 569.52 million rupees ($4.43 million) turnover. Foreign investors bought a net 174.2 million rupees worth of shares, extending the net foreign inflow this year to 36.58 billion rupees.
'The market is up on foreign buying. Local investors are on the sideline due to high interest rates ahead of the Christmas holidays,' said one stockbroker.
Yields in 182- and 364-day T-bills rose for an eighth straight week on Wednesday, hitting the retail investor sentiment.
The rupee closed tad weaker at 128.75/85 to the dollar compared with Friday's close of 128.50/60 on seasonal importer demand for dollars, dealers said. ($1 = 128.5500 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez, Editing by Jonathan Thatcher) Keywords: MARKETS SRILANKA/
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