Sri Lankan share index fell for a seventh straight session on Tuesday due to panic selling, led by margin calls after the market fell over 3.5 percent in the past six sessions, brokers said. Fears over investors shifting to risk-free assets such as government securities due to rising yields in government securities also dented sentiment.

The main stock index ended 1.74 percent or 115.97 points down at 6,534.35, the lowest close since July 7, 2014. The index fell as much as 1.85 percent, posting its biggest fall since August 24, 2015. The bourse dipped further into an over sold territory on Tuesday with the 14-day relative strength index at 17.311 points versus Monday's 22.844, Reuters data showed. A level between 30 and 70 indicates the market is neutral. The turnover was at 997.2 million rupees ($6.94 million).

Copyright Reuters, 2016