COLOMBO, Oct 31 (Reuters) - Sri Lankan stocks fell to their lowest level in nearly eight weeks on Wednesday as investors settled month-end positions, while others held off bets until next week's federal budget and corporate earnings.
The rupee edged down on importers' demand for dollars, dealers said.
The Colombo Stock Exchange's main index fell 0.13 percent, or 6.98 points, to end at 5,513.64, its lowest since Sept. 7.
"The market was down as it is the month end and many local investors are looking for direction, with the budget on the corner," said a stockbroker who declined to be identified.
The government will present the 2013 budget on Nov.8 while several companies will release quarterly results next week.
Turnover on the Sri Lanka exchange was 477.2 million rupees ($3.68 million), half of this year's daily average of 925 million rupees.
Foreigners bought a net 164 million rupees worth of shares, extending the net foreign inflow so far this year to 33.89 billion rupees.
The rupee ended weaker at 130.20/25 to the dollar from Tuesday's close of 130.15/25. ($1 = 129.8000 Sri Lanka rupees)
(Reporting by Ranga Sirilal; Editing by Sanjeev Miglani)
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