COLOMBO: Sri Lankan stocks fell to their two-week lows, led by illiquid large caps despite significant foreign buying and as lack of retail investor confidence hit sentiment amid a falling rupee, brokers said.

The main share index ended 1.73 percent, or 107.67 points, down at 6,116.67, its lowest close since Aug. 5.

"The sentiment is still dampening and investors do not see a positive reason to buy large quantities," said a stockbroker.

Other brokers said investors were cautious due to the fall in the rupee.

The local currency hit an 11-1/2-month low on Wednesday due to importer dollar demand.

Shares in large cap Ceylon Tobacco Company fell 5.11 percent to 1,290 rupees, while Nestle Lanka plummeted over 8 percent to 2,340.10 rupees.

Foreign investors were net buyers of 337 million rupees ($2.56 million) worth of shares, extending the year-to-date net foreign inflow to 18.52 billion rupees.

Turnover was 954 million rupees, more than this year's daily average of about 921 million rupees.