Sri Lankan stocks reversed early gains to close lower on Thursday, as selling in long-term lender National Development Bank Ltd pushed the index lower. The key Colombo all-share index ended down 0.21 percent, or 3.05 points, at 1,440.26, with turnover light at 190.0 million rupees.
NDB fell nearly 4 percent to 156.50 rupees, after rising 5 percent on Wednesday on what brokers said was speculative buying on market talk of a large deal between two funds.
Other blue chips also fell on retail profit-taking, with Central Finance Ltd losing 0.84 percent to 264.75 rupees and Sri Lanka Telecom Ltd down 1.2 percent at 19 rupees.
The Colombo bourse is up nearly 36 percent this year and hit life-highs earlier this month, but brokers said the market was still being driven largely by retailers, with little news to spur institutional activity.