Sri Lanka stocks ended down nearly four percent at six-month lows on Tuesday, with investors still reeling from a weekend snap election call that raised fears for the future of peace efforts with Tamil Tiger rebels.
The key Colombo all-share index closed down 3.93 percent, or 41.62 points, at 1,016.71, after haemorrhaging more than 10 percent on Monday.
Initial figures showed the market ending down 3.01 percent.
"The market could keep sliding. In the current context there is still no idea where the elections are going to head," said one broker.
The market has lost more than 400 points about half its gains in the two years since a cease-fire was signed with the rebels since hitting a life high of 1,421.35 in October.
The slide began in November, when a feud erupted between President Chandrika Kumaratunga and Prime Minister Ranil Wickremesinghe over the government's handling the peace efforts.
Kumaratunga called the April 2 poll in a bid to break the stalemate between the two, but investors fear election violence and the impact on the peace process, and scare off both tourists and foreign investment.
Blue chips were hardest hit, with conglomerate John Keells Holdings Ltd which has interests ranging from ports to supermarkets down 2.87 percent, or 2.75 rupees, to 93.
Sri Lanka Telecom Ltd, which has the largest market capitalisation, lost 1.45 percent, or 0.25 rupees, to 17 rupees, while Aitken Spence and Co Ltd slipped 0.93 percent, or 2.25 rupees, to 240 rupees.
Hotel stocks, which took a beating on Monday, slid further, with the hotel and travel index down 3.65 percent, in line with the broader market.
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