Sri Lankan shares ended higher for a third straight day on Tuesday on hopes of political stability after the prime minister decided to stay in office and reshuffle his cabinet in the wake of a stinging loss in local elections for both parties in the ruling coalition. The coalition parties held a cabinet meeting on Tuesday and said the island nation's government plans to continue their tenure.

The Colombo stock index ended 0.19 percent firmer at 6,577.84, hitting their highest close in more than three months. Turnover stood at 860.2 million rupees ($5.54 million), in line with the daily average of 850 million rupees. Foreign investors bought a net 72.3 million rupees worth of shares on Tuesday.

Copyright Reuters, 2018