COLOMBO, June 29 (Reuters) - Sri Lankan shares fell for an eighth straight session on Wednesday as sentiment continued to be lacklustre following a minister's comments a day earlier on the imposition of capital gains tax on equities.
Sri Lanka will impose a capital gains tax on profits from equities, a senior government minister said late on Monday, as the government tries to shore up its finances to meet conditions for an IMF loan.
The benchmark Colombo stock index ended 0.26 percent down at 6,290.89.
"Activity level was very low today after yesterday's capital gain tax news. Investors took a much cautious stance. Investors are waiting to know about the new central bank governor," said a stockbroker, asking not to be identified.
"Despite the regional markets being up, the market is down on local worries."
Sri Lankan President Maithripala Sirisena on Wednesday said he would appoint a new central bank governor within hours, a week after incumbent Arjuna Mahendran said he would not seek an extension of his term until a parliamentary committee clears his name of allegations against him.
Turnover stood at 356 million rupees ($2.44 million), nearly half of this year's daily average of around 746.3 million rupees.
European and Asian stock markets built on a recovery from the shattering aftermath of last week's Brexit vote as investors wagered central banks would ultimately ride to the rescue with more stimulus.
Global uncertainty after Britain's decision to leave the EU also weighed on the market with continued foreign selling.
Overseas funds offloaded 6.15 billion rupees worth of equities so far this year, but they have been net buyers of 28.2 million rupees worth of shares on Wednesday, recording the first net inflow in the last five sessions.
Shares in CT Holdings Plc fell 3.85 percent while biggest listed lender Commercial Bank of Ceylon Plc fell 0.57 percent.
($1 = 146.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)