Sri Lankan stocks slip as election worries weigh

COLOMBO, Dec 12 (Reuters): Sri Lankan stocks ended slightly weaker on Friday for the second straight session, led by beverage and diversified shares as investors remained cautious ahead of a Jan. 8 presidential election.

The main index ended 0.1 per cent, or 6.97 points, lower at 7,236.37. Turnover was 511.7 million rupees ($3.90 million), provisional data showed.

"There was not much retail activity, trading was very low ahead of holidays and the election," said Dimantha Mathew, manager research, at First Capital Equities (pvt) Ltd.

Lion Brewery Plc, which led the fall in the overall index, closed 2.7 per cent weaker while conglomerate John Keells Holdings Plc fell 0.75 per cent.

Analysts expect volatility to continue and the index to remain flat until the election.