Sri Lankan shares closed lower on Thursday, dragged by losses in financials and industrials stocks.

* The CSE All-Share index settled 0.59% lower at 12,188.79.

* Sri Lanka's agreements with China and other creditor nations to restructure about $10 billion in bilateral debt brought it a step closer towards restoring debt sustainability, the International Monetary Fund (IMF) said on Thursday.

* Trading volume on the CSE All-Share index fell to 40.9 million shares from 75.2 million in the previous session.

* The equity market's turnover fell to 1.01 billion Sri Lankan rupees ($3.3 million) from 1.86 billion rupees in the previous session, according to exchange data.

* Foreign investors were net sellers, offloading stocks worth 71.9 million rupees, while domestic investors were net buyers, purchasing shares worth 962.3 million rupees, the data showed.

* For a report on global markets, click ($1 = 305.5000 Sri Lankan rupees) (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Shailesh Kuber)