Sri Lankan President Mahinda Rajapaksa, who is also the finance minister, unveiled a 2014 budget that aims to help produce faster growth, a smaller budget deficit and a bigger stock exchange in Colombo.
The main stock index closed down 0.16 percent, or 9.13 points, at 5,792.72, its lowest close since Oct. 1.
Analysts and stockbrokers said they were awaiting clarifications on budget proposals.
The banking sector index fell 0.3 percent, led by the biggest listed lender Commercial Bank of Ceylon, which lost 1.3 percent.
The day's turnover was 306.6 million rupees ($2.34 million), well below this year's daily average of around 853.3 million rupees.
Foreign investors were net buyers of 5 million rupees worth shares, extending the net foreign inflow so far this year to 22.59 billion rupees.
($1 = 131.1000 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)
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