Sri Lankan stocks fell more than two percent on Tuesday, with investors disappointed by the lack of an expected announcement on restarting peace talks between the Tamil Tiger rebels and the government, brokers said.
The key Colombo all-share index closed down 2.01 percent, or 26.23 points, at 1,279.91. The more liquid Milanka Index which tracks the most highly capitalised stocks fell 0.39 percent, or 7.75 points, to 1,974.49.
The total turnover was 201 million rupees, 20 million higher than Monday's turnover. Foreign purchases totalled 90 million, with 41 million rupees of foreign selling.
Palm oil plantation company Bukit Darah Company Ltd led losses, and fell 14.5 percent, or 145 rupees, to 855 rupees.
But most blue chips were steady, with market heavyweights John Keells Holdings Ltd and Sri Lanka Telecom Ltd both trading flat at 101 rupees and 16 rupees respectively.
The two stocks together account for more than one-fifth of the market.
National Development Bank Ltd was also unchanged at 150 rupees after posting a 22 percent loss in first quarter net profit on Monday.