The S&P SL20 closed 18.55 points higher at 3,239.26, up 0.58 percent.
Turnover amounted to 622.16 million rupees, down from 840.78 million rupees the previous day with shares of 107 firms gaining against 87 losers.
Foreigners bought shares worth 86.25 million rupees, down from 351.28 million rupees the previous day, and sold 113.76 million rupees worth of shares, down from 271.77 million rupees yesterday.
Troubled Touchwood closed 20 cents lower at 4.30 rupees and saw more than 9.43 million shares change hands.
Blue Diamonds closed 10 cents lower at 1.30 rupees and more than 13.9 million shares changed hands during the day and PCH Holdings closed 10 cents higher with more than 14.6 million shares traded.
JKH closed 2.70 rupees higher at 216.50 rupees.
Ceylon Guardian Investment closed 80 cents higher at 199.80 rupees.
CTC closed 14.00 rupees higher at 1,054.00 rupees and Sri Lanka Telecom closed 70 cents higher at 39.30 rupees.
LOLC closed 2.00 rupees higher at 61.00 rupees and Colombo Land and Development closed 3.40 rupees higher at 45.00 rupees.
Sampath Bank closed 70 cents higher at 172.20 rupees and HNB closed 80 cents higher at 150.80 rupees.
CT Holdings closed 4.90 rupees lower at 140.10 rupees and Asian Hotels and Properties closed 1.10 rupees lower at 70.00 rupees.
Royal Ceramics closed 3.50 rupees lower at 90.00 rupees and Aitken Spence Hotels closed 80 cents lower at 66.10 rupees.
Printcare closed 3.00 rupees lower at 27.00 rupees.
The US dollar was quoted at 131.00/20 rupees in late trading in the spot market, after opening at 131.40/43 rupees helped by dollar sales by foreign banks and exporters, dealers said. The rupee has gained steadily over several days.
A liquid five year Treasury bond was trading at 11.68 percent, after opening at 11.57/70 percent.