Sri Lankan shares closed nearly 1% lower on Monday, registering their biggest one-day fall in more than two weeks, weighed down by industrial companies.

The CSE All-Share index ended 0.95% lower at 9,227.88 points. Last week, the index gained 4.31%.

Expolanka Holdings was the top drag, falling 2.8%.

The island country last week said it would bring in new laws to deter hoarding and increase penalties on traders to tackle food shortages caused largely by the country's deteriorating forex reserves.

The equity market's turnover was 7.7 billion rupees, according to stock exchange data.

Trading volume on the exchange rose to 874.4 million shares from 639.9 million shares in the previous session.

Sri Lankan shares close lower as financials weigh

Foreign investors were net sellers in the equity market, offloading shares worth 858.5 million rupees, exchange data showed.

Domestic COVID-19 cases rose by 3,308 in the last 24 hours, taking the total to 462,767, even as the island nation remains under a lockdown. The government last week extended the lockdown, which was supposed to end on Monday, until Sept. 13

Sri Lanka reported 189 fatalities due to COVID-19 in the last 24 hours, bringing the death toll to 10,140.

Data from Johns Hopkins University showed the country has fully vaccinated 41.91% of its population so far.