Sri Lankan stocks fell on Monday despite retail interest in hotel shares, as investors continued to take profits after the market hit life highs earlier this month, brokers said.
The key Colombo all-share index ended down 1.44 percent or 20.82 points at 1,421.07. The market is however up around 34 percent so far this year.
Total market turnover was 152.4 million rupees ($1.48 million) with foreign sales of 9.7 million rupees and foreign purchases of 34.4 million rupees.
"Investor sentiment was also a little down after the fuel crisis over the weekend and from lack of positive news on the peace process," said one broker.
A two day strike by state owned Ceylon Petroleum Corporation workers against further privatisation of Ceypetco's assets and a fuel price hike by the government during the weekend has raised concerns about increasing cost of living and government privatisation policies.
Analysts said any rise in inflation and interest rates will have a direct impact on the equity market with investors turning to fixed income markets.
C.T Land Development Ltd fell 11.94 percent to 14.75 rupees after having peaked to 24 rupees a week ago.
Sri Lanka Telecom Ltd fell 3.8 percent to 19 rupees.
Distilleries Co of Sri Lanka Ltd ended down 1.75 percent to 28 rupees.
Aitken Spence and Co Ltd fell 0.67 percent to 296 rupees.