COLOMBO Dec 15 (Reuters) - The Sri Lankan share index recovered on Tuesday from its lowest close in more than eight months hit in the previous session led by blue chips and large-cap stocks, despite foreign investors staying away ahead of an interest rate decision by the U.S. Federal Reserve later this week.

The main stock index ended 0.26 percent firmer at 6,820.77, recovering from Monday's more-than-eight-month closing low.


"It is a typical year-end market. Most of the investors are on leave," a stockbroker said.

Turnover stood at 571.3 million rupees ($3.98 million), around half of this year's daily average of 1.1 billion rupees.

Foreign investors sold a net 104.6 million rupees worth of shares on Tuesday, extending the year-to-date net foreign outflow to 4.04 billion rupees worth of equities.

Stocks rose in Europe and Asia on Tuesday, though volatile oil prices kept investors cautious before a widely anticipated increase in U.S. interest rates later in the week.

Market is expected to be lacklustre due to year-end holidays from next week due to Christmas and the turnover is expected to be low.


Conglomerate John Keells Holdings Plc ended 1.15 percent up, while development lender DFCC Bank closed 1.93 percent higher.

($1 = 143.5000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Sunil Nair)