Sri Lankan shares retreated from record highs on Monday and ended over 1% lower as industrial and financials stocks weighed.

The CSE All-Share index closed 1.23% down at 13,117.07 points. The index settled at record peaks for the last six sessions, with local investors driving the rally.

The index also haulted its eighth straight session of gains on Monday, having risen 8.63% last week, its highest since late January last year.

Foreign investors were net sellers in the equity market, offloading shares worth 215.6 million rupees ($1.06 million), while domestic investors were net buyers of shares worth more than 8.61 billion rupees, exchange data.

Sri Lankan shares register new closing peaks, industrials shine

The equity market's turnover was 8.81 billion rupees.

Conglomerate LOLC Holdings and logistics firm Expolanka Holdings were the top drags on the index, falling 2.8% and 2.1%, respectively.

Trading volume fell to 362.6 million shares from 622.3 million shares in the previous session.

Meanwhile, Sri Lanka's President Gotabaya Rajapaksa on Sunday asked China to help restructure debt repayments as part of efforts to help the country weather a worsening financial crisis, his office said in a statement.

The South Asian country has to repay about $4.5 billion in debt this year, with a $500 million International Sovereign Bond maturing next week.