The benchmark stock index ended 0.73pc down at 5,846.94, its lowest close since July 25. It gained 0.37pc last week, its sixth straight weekly gain.

So far this year, the index is down about 3.4pc.

Turnover was 546.2 million rupees ($3.08 million), less than this year's daily average of about 639.7 million rupees so far. Last year's daily average came in at 834 million rupees.

Foreign investors sold a net 70 million rupees worth of shares on Tuesday, but they have been net buyers of 504.8 million rupees worth of equities so far this year, according to index data.

Shares of Hatton National Bank Plc declined 3.4pc, Nestle Lanka Plc fell 2.9pc, LOLC Holdings Plc  closed down 1.7pc and conglomerate John Keells Holdings Plc ended 0.8pc weaker.

Meanwhile, the rupee slipped for the seventh  straight session, closing at 177.45/65 per dollar, compared with Monday's close of 176.95/177.05.

The rupee fell 0.73pc in the past seven sessions, but is up 2.9pc so far this year.

The central bank left key interest rates unchanged on July 11 as expected, after cutting them in May to support the economy as tourism and investment plummeted in the wake of deadly suicide bombings in April.

Foreign investors sold a net 5.11 billion rupees worth of government securities in the week ended July 31, extending the  year-to-date net foreign outflow to 27.31 billion rupees, central bank data showed.