The Colombo Stock Exchange’s main index lost 0.06 per cent or 2.97 points, to end at 4,928.50.
“The interest rate decision will be crucial as investors may shift to fixed-income instruments if the central bank raises the policy rates further,” said a stockbroker on condition of anonymity.
The central bank announcement is due on Tuesday.
Market heavyweight and top conglomerate John Keells Holdings, which ended 0.4 per cent up, accounted for 60 per cent of the day’s Rs. 353.7 million turnover. It was well below the year’s daily average of Rs. 889.4 million.
Foreign investors were net buyers for an 11th straight session at Rs. 119.8 million worth of shares, extending the net foreign inflow this year to Rs. 25.9 billion ($196.29 million).
The rupee closed steady at 131.95/132.00 as importer dollar demand was offset by greenback sales by banks, dealers said.