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The Finance Minister toned down talk of increased spending and a bigger budget deficit, as financial market players expressed concern about the possible economic fall out.

rnThe minister pledged policy continuity and said he will keep a close eye on the deficit while emphasizing the need to meet the government revenue targets.rn

rnExperts say the statements come close to a complete policy reversal but said decisive action might be needed to quell uncertainty in the financial markets.rn

rnThe government which was elected on a anti privatization platform said last week it plans to sell stakes in both Sri Lanka Telecom and SriLankan Airlines by listing them in a regional stock exchange.rn

rnldblquote There were suggestions to list them on the Singapore Stock Exchange and we are examining the possibility,
dblquote Sarath Amunugama, Finance Minister told a media conference last week.rn

rnThe statement, welcomed by, analysts was at odds with earlier pledges by the UPFA to shun privatization alto