COLOMBO: Sri Lankan shares ended slightly higher on Wednesday as investors sought bargains in blue-chips but concerns over recent budget tax proposals weighed on sentiment.

The Colombo stock index ended up 0.15 percent at 6,241.10, ending three sessions of losses.

The index hit a near-eight-month low on Tuesday on concerns that the proposed hike in various taxes and fees would reduce disposable income and challenge consumption-led growth, analysts said.

"Market is up on bargain-hunting by foreigners but it's not a major factor at the moment unless the trend is going to continue," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd.

Turnover stood at 579.6 million rupees ($3.89 million), much less than this year's daily average of 694.6 million rupees.

Foreign investors bought a net 48.1 million rupees worth of shares on Wednesday.-Reuters