Turnover was a low 469 million rupees, one of the lowest in recent months, according to stock exchange provisional figures.
Dialog Axiata, a mobile phone operator which Wednesday said it would buy Suntel, a fixed access unit, rose 20 cents to close at eight rupees, with 1.17 million shares traded, and hitting a high of 8.10.
"The Colombo bourse contracted further today with deepening investor pessimism, deleveraging their positions," Lanka Securities said in a report.
Several stocks which were listed recently and some high cap stocks hit 52-week lows during the day, they said.
"The announcement regarding Dialog Axiata's share purchase agreement with Suntel Limited had a minor effect on the counter during the day."
There was a crossing or off-market private deal of 440,700 shares of John Keells Holdings at 179 rupees each. The stock closed at 176.70, down 3.10.
There was also a crossing of 150,000 Distilleries Company shares at 150 rupees each. It closed 10 cents firmer at 150.
Acme Printing & Packaging, the most actively traded stock, was the third biggest loser of the day, falling 1.40 rupees to close at 21.20, with 1.76 million shares changing hands. It hit a high of 24.10 rupees.
HVA Foods sagged further to close at 34.10 rupees, down 1.50 rupees, after rising to 36.20 with 501,500 shares traded.
Colombo Land & Development Company firmed up 80 cents to close at 52.60 rupees. There was a crossing of 400,000 shares at 51.30 rupees each.