Sri Lanka stocks closed slightly higher on Friday, boosted by a dividend announcement and foreign and small investor buying across the board, brokers said. The key Colombo all-share index rose a provisional 0.1 percent or 1.70 points, to 1,712.63 points - just shy of the life closing high of 1,716.71 set on February 8. The bourse has gained almost 14 percent so far this year on hopes for upbeat corporate earnings due for release in the coming weeks and gains in the construction sector seen benefiting from post-tsunami rebuilding.

The Milanka index - which tracks the most liquid and highly capitalised stocks - gained a provisional 0.54 percent, or 12.57 points, to 2,361.48 points.

Shares of property developer East West Properties Ltd rose 20.73 percent to 24.75 rupees a share following a dividend announcement closer to the end of trade on Friday.

Foreign and small investor continued to buy blue chip Commercial Bank of Ceylon Limited - tipped to post strong third-quarter earnings - and the share rose 0.26 percent to 194.25 rupees a share.

Copyright Reuters, 2005