Another bombing inside the city on May 16 killed 13 people and wounded more than 80 people.
Sri Lanka's president Mahinda Rajapaksa vowed Tuesday to press on with a military campaign to crush the Tigers, saying the government would not stop till terrorism is defeated.
The All Share Price Index dipped 0.
51 percent (13.14 points) to 2,558.89 while the more liquid Milanka fell 10.98 points to close the day at 3,065.
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44. Turnover was 151 million rupees.
Among the most traded counters was East West Properties with almost 1.2 million shares being traded. The share ended up 50 cents at 14.50 rupees.
"Foreign trade was heavier on the purchasing side bringing in a net inflow of 22 million rupees," Bartleet Mallory Stockbrokers said in a market report.
The price losers outnumbered the price gainers by 94 to 29.
The slide came amid increasing fears of stepped up attacks on civilians by Tamil Tigers who bombed a train during the evening rush hour Monday killing nine people and wounding more than 70.