The All Share Price Index closed at 7,475.16, down 0.96 percent (72.63 points) while the more liquid Milanka index fell 1.33 percent (93.91 points) to close below 7,000 points at 6,944.79, according to stock exchange provisional figures.
Turnover was 1.39 billion rupees.
Free Lanka Capital Holdings, which started trading Monday, was the most heavily traded stock, closing at 5.60 rupees, down 20 cents with over 16.37 million shares changing hands.
Brokers Lanka Securities said there was profit-taking in Free Lanka Capital Holdings.
Free Lanka had an initial public offering in March of 300 million shares at five rupees each.
Aitken Spence closed at 165.10 rupees, down 40 cents with a million shares done in a single crossing at 165.
50 each.
John Keells Hotels closed at 17.
50 rupees, down 50 cents with just over two million shares done of which 1.75 million shares went in a single crossing at 17.60 rupees each.
Poultry firm Bairaha Farms saw 80,000 shares done in a crossing at 480 rupees each. The stock closed at 475.30 rupees, down seven rupees.
The stock exchange statement said it had approved an application by Chilaw Finance to list 28 million ordinary voting shares on its second board.
The listing, to met regulatory requirements, would be through the "introduction" process which does not involve an initial public offer for subscription of a stock of shares to the public.