Cash-strapped Sri Lanka’s new extraction scheme
Since late 2010, the Sri Lankan government has made much of the country’s soaring stock market as indicative of a post-war boom.
The claim has also been repeated by some international analysts.
However even by October 2010, it was becoming clear that the stock index was being boosted by the government itself.
State-owned pension funds were doing much of the buying - even as foreign investors have been largely taking their funds out.
See our earlier post ‘Sri Lanka’s stocks: a closer look’
But now the chickens are coming home to roost.