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Sri Lanka President marks one year in office amidst continued violence

Dilshan Wirasekara, Chairman of the Colombo Stock Exchange

Nov 19, 2006 (AFP) - Sri Lanka's President Mahinda Rajapakse came to power promising a new approach to peace.
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But as he marks the end of his first year in office Sunday, the country continues to be wracked by violence, pushing its defence budget to a record high. The International Monetary Fund warned last week the country could be headed for an economic crisis if the seemingly unending conflict was not peacefully resolved soon.
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But as he marks his the end of his first year in office Sunday, the country continues to be wracked by violence, pushing its defence budget to a record high.
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When he ran for the presidency, Rajapakse was widely regarded as a hardliner and dubbed the "war candidate" by Tamil rebels.

He promised a new approach to bring an "honourable peace" to the tropical island nation racked by more than three decades of ethnic conflict that has claimed over 60,000 lives.

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But after winning the election, he said he would instead persist with the Norwegian-backed peace initiative supported by his predecessor.

Since then, 3,422 people have been killed in ethnic violence, defence ministry figures show.

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The violence resulted in a 45-percent increase in defence spending to 1.29 billion dollars in the 2007 budget.

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The presiden

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