Sri Lankan shares recovered from a more than two-week low on Tuesday, snapping a four-session falling streak in thin trading as investors waited for the new government's interim budget scheduled for next week.

The main stock index was trading 0.34 per cent higher or 25.05 points firmer at 7,391.73 by 0649 GMT, recovering from its lowest close since January 2 hit on Monday.

President Maithripala Sirisena’s government will present an interim budget on January 29 with an aim to reduce the cost of living.

President Sirisena’s coalition has promised a 100-day programme to restore democracy and the economy before he dissolves Parliament for a general election after April 23.

“All are waiting for the budget,’’ a stockbroker said.

“The index is up due to a technical rebound. Everybody wants to see what the government is going to do in the 100 days and whether the policies would be good enough for it to win the next election.’’

The index fell 3.14 per cent in the last four sessions on political uncertainty. Prime Minister Ranil Wickremesinghe is expected to make a special speech in Parliament on Tuesday.

Market turnover was 309 million rupees ($2.35 million) by 0701 GMT, exchange data showed.

Rupee forwards traded slightly weaker on importer dollar demand, dealers said.

Actively traded three-day forwards were at 132.75/85 per dollar by 0705 GMT, compared with Monday's close of 132.50/60, dealers said. ($1 = 131.5000 Sri Lankan rupees)

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