Sri Lankan shares closed higher on Wednesday, aided by gains in financial stocks, as investors await the central bank's monetary policy decision where it is expected to cut interest rates.

* The CSE All Share index settled up 0.42% at 11,080.79, snapping two sessions of losses. * The Central Bank of Sri Lanka is expected to announce a 100-basis-point (bps) cut in both the Standing Deposit Facility Rate and the Standing Lending Facility rate, taking them to 10% and 11%, respectively, a Reuters poll found. * The rate cut is seen as an attempt to bolster a recovery from its worst economic crisis in decades, capitalising on low inflation to complete the first review of a $2.9 billion IMF bailout package. * Meanwhile, the crisis-hit island nation will focus on improving tax collection to reduce budget deficits and has new legislation planned to improve public finances, its treasury secretary said earlier on Wednesday. * LOLC Finance PLC and Lion Brewery (Ceylon) PLC were the top gainers on the CSE All Share, rising 4.08% and 6.7%, respectively. * Trading volume on the CSE All Share index rose to 33.9million shares from 29.7 million shares in the previous session. * The equity market's turnover rose to 874.3 million Sri Lankan rupees ($2.70 million) from 854.5 million rupees in the previous session, according to exchange data. * Foreign investors were net sellers, offloading stocks worth 129.2 million rupees, while domestic investors were net buyers, purchasing shares worth 802.6 million rupees, the data showed. * For a report on global markets, click ($1 = 323.2500 Sri Lankan rupees) (Reporting by Hritam Mukherjee in Bengaluru; Editing by Shailesh Kuber)