Colombo shares ends positive on Rajapaksa’s return 

Former strongman Mahinda Rajapaksa’s return as the Prime Minister triggered positivism and sent traders at Sri Lanka's Colombo Stock Exchange (CSE) into a buying spree, analysts said. 

The CSE opened sharply up with both indices up, albeit on thin volumes and managed to sustain this momentum at close.  The All Share Index went up by 1.88 per cent to stand at 5,941.31 by 2.30 pm with the S& Index going up by 1.89 per cent to stand at 3,053.96 points. The turnover was Rs. 4 billion on a volume of 64 million shares by this time. 

Mr. Rajapaksa assumed duties at the prime minister's office on Monday. His return to power ended a more than three-year-old coalition government that was formed by President Maithripala Sirisena and Ranil Wickremesinghe on a promise to combat corruption and financial irregularities. 

Amidst a deepening constitutional crisis and political uncertainty, analysts said that pro Rajapaksa factions seem to be pushing the CSE up. Others said it is the upbeat sentiment of the return of a CSE-friendly regime that’s bringing the market up. 

President Maithripala Sirisena shocked the country last Friday night by announcing the dismissal of the Prime Minister Mr. Wickremesinghe and replacing him with Mr. Rajapaksa, who he ousted in 2015 election when Rajapaksa was President.  

In 2015, he with Mr. Wickremesinghe promised an end to the allegations of corruption, nepotism and human rights abuses that surrounded Rajapaksa’s regime.

The ousted Prime Minister says that his dismissal is unconstitutional and has refused to vacate Temple Trees, the prime ministerial residence.  (DEC)