Sri Lankan stocks fell on Monday as retail investors voiced concern about the country's overall macroeconomic conditions, brokers said.
The key Colombo all-share index ended down 0.64 percent, or 8.79 percent at 1,375.17. The market has gained 29 percent this year so far thanks to buoyant earnings results.
The Milanka index, which tracks the most liquid and highly capitalised stocks, fell 0.86 percent, or 17.91 percent, to 2,059.87.
Total turnover was a very light 48.32 million rupees ($469,000), with foreign purchases of 12.3 million rupees and foreign sellings of 504,000 rupees.
"Individual company earnings are good, but investors are worried with the cost of living rising and strikes being threatened all around about the larger economic picture," said one broker.
Inflation rose in July and is expected to rise again in August, the trade deficit has widened, the budget deficit is forecast to widen too and the rupee has depreciated over 6.0 percent this year.
Electricity sector workers have threatened srike action to demand a wage hike, while bus operators are demanding an increase in prices.
Shares across the board were hit as investor confidence deteriorated after a week of losses sustained largely by retail investors in select stocks.
Sri Lanka Telecom Ltd fell 1.35 percent to 18.25 rupees.
Kelani Cables Ltd fell 19.42 percent to 56 rupees.
Ceylinco Seylan Developments Ltd fell 3.03 percent to 8 rupees, on foreign selling of about 200,000 worth of shares.
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