Sri Lankan shares finish lower for third straight session

Feb 10 (Reuters) - Sri Lankan shares closed down for a third consecutive session on Wednesday, with consumer staples and industrial stocks accounting for more than half the losses on the bourse.

* The benchmark stock index closed down 2.9% at 7,732.43. It has fallen 3.8% in the past week.

* The Sri Lankan rupee was last quoted at 196.5 against the U.S. dollar by 1110 GMT, 0.77% lower for the day compared to last session’s close of 195, according to Refinitiv data.

* On Tuesday, Sri Lanka’s government bonds tumbled as warnings that the country was at increasing risk of default continued to mount after a turbulent couple of weeks for Colombo.

* On Wednesday, trading volume on the CSE All Share Index fell to 171.1 million, from 128.8 million in the previous session.

* Browns Investments Plc dropped 8.3% and conglomerate Expolanka Holdings Plc fell more than 3.9%, both stocks were among the most traded by volume.

* Foreign investors were net sellers, offloading 728.1 million Sri Lankan rupees ($3.71 million) worth of shares, according to exchange data.

* Equity market turnover was 5.12 billion Sri Lankan rupees, data showed.

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* For a report on major currencies, click <FRX/ ($1 = 196.5000 Sri Lankan rupees) (Reporting by Chandini Monnappa in Bengaluru; Editing by Shailesh Kuber)