Shares surge over 'LTTE base attack'

(January 24, Colombo, Sri Lanka Guardian) Government of Sri Lanka claims that its air force hit the base of the LTTE leader Vellupillai Prabhakaran boosted the Colombo Stock Exchange index by 65 points.

But LTTE denied that the base was hit during Wednesday's raid and dismissed the government claim as false propaganda.

Despite a lack of information on the severity of the attack on the 'X-Ray base' in Killinochchi and the fate of the elusive rebel leader, brokers said the news resulted in a positive investor sentiment.

The Colombo bourse rocketed Wednesday, with the All Share Price Index surging 64.46 points (2.70 per cent) and the Milanka indices gaining 80.42 points (2.62 per cent) on a turnover of Sri Lankan Rs 232.2 million, up from Monday's dismal Sri Lankan Rs 67.3 million.

'There was a major jump once word of the air strike filtered into the market and at one point, the All Share Price Index had gained over 80 points,' Prashan Fernando of DFCC Stockbrokers said here, adding that the index settled lower at close of trading.

In the early trading sessions on Thursday, the indices remained buoyant.

LTTE spokesman Irasiah Ilanthirayal said the Sri Lanka Air Force had hit civilians’ targets in Iranamadu in Kilinochchi where the LTTE’s air wing is located.

Air Force Spokesperson Wing Commander Andi Wijesoriya said the military had targeted a base frequented by Prabhakaran.

‘The 53-year-old 'LTTE chief could have been there (at the base) just 15 minutes prior to the aerial bombardment by the Sri Lankan Air force,' according to the Government sources.

The air raid was timed with a 'special' activity that was going on at the LTTE base, a Defence Ministry statement said.

It, however, did not say anything on the fate of Prabhakarn who suffered a series of setbacks last year.

The LTTE's political wing chief S. P. Thamilselvan was killed in an air strike in November and weeks later the military claimed Prabhakarn too was injured in an airforce attack but the LTTE refuted the report.

Fighting between the LTTE and Government Forces has intensified in the north after the government ended the 2002 Norwegian-brokered ceasefire with the rebels on 16 January.