Sri Lanka News Updates with Discussions

Pottu Amman flees to South?
(Lanka-e-News, January 04, 2008, 4.45 PM) Reliable sources say that a foreign intelligence service has informed Sri Lankan defense authorities that LTTE Deputy Leader as well as intelligence leader Shanmugalingam Shivashankar alias Pottu Amman has fled Vanni following the collapse of the bastions of the Tigers. However, with the lack of information regarding if he had fled to a foreign country, the sleuths believe that he has positioned himself somewhere in South.

Sources say that with the repeated failures of the LTTE, the responsibilities of Pottu Amman has been given to one Rathnam Master. Accordingly, Rathnam Master is responsible for the LTTE intelligence wing, the air wing and the Radha Regiment that provides security to Prabakaran. Pottu Amman has been given activities in South, sources say.

It is said that the LTTE is sending its permanent, trained cadres to foreign countries and southern parts of the country as civilians without sending them to the battlefront to be killed. The fact is proved as Tamil Nadu police arrested around 10 permanent, trained LTTE cadres from refugee camps there during the past couple of weeks.

Intelligence sections have learnt that about 30 suicide LTTE cadres have arrived in South with Pottu Amman. Security forces say that escape paths for Prabakaran who is now hiding in Viswamadu and Mulaithivu jungles have been blocked. Karuna Amman said to a weekend newspaper today (04) that Prabakaran is still in Vanni and there were no reports about his family.

Army entered Oddusuddan township -Mullaittivu
(Lanka-e-News, January 04, 2008, 5.15PM) Troops of Task Force 4 who have continued their advances further northwards after capturing Nadunkeni have entered Oddusuddan township by this afternoon, 4 January said Defence Ministry.

According to the latest information, troops of 14 Sinha Regiment (SR) commanded by Major U.S.N.K Perera under command to 642 Brigade commanded by Lt. Colonel B.T Hathnagoda entered the Oddusuddan town following the days long fighting ensued in the area.

The strategically vital Oddusuddan junction located along the Mankulam - Mullaittivu (A34) main road had been used by the LTTE for their administrative and logistic purposes as it has direct route access towards Mullaittivu, Puthukkudiyiruppu, Mankulam and Nedunkeni Defence Ministry further said.

The recent Ceylinco Group crisis is brewing a liquidity issue in the country, according to some industry analysts but bankers and other experts say that things will settle soon.

R. Gajendran, Partner Gajma and Company, said a fear psychosis is creating the impression that there is a flight of funds from some companies.

The Central Bank has moved fast on this occasion and it is endeavouring to bring about stability. In any environment, if people start withdrawing money just like that, there could be a run even on a large, established and stable bank. With the intervention of Central Bank and with the restoration of confidence, hopefully things should settle down.

He said the current Ceylinco crisis is a crisis of confidence. The world over confidence of the people in the financial system has been challenged as never before. Financial mismanagement over enthusiasm and greed in the western market have brought about the present crisis. Sri Lanka is gradually starting to feel the pinch and it may proliferate in magnitude during 2009. The second quarter of 2009 may redefine Sri Lanka s destiny, he said.

A senior banker said that no bank can survive without the trust of their deposit holders and hence a loss of confidence by the public in a large bank is an issue for the overall financial sector.

However, there would be other challenges for the industry next year like the slowdown in loan growth, rising NPLs, limited capital funding sources and lack of liquidity in the foreign exchange market, he added.

The Crisis of Confidence has hit Sorrylanka faster than anticipated !

The crisis of confidence and boasting had hit Peelam faster than expected....:-)