Sri Lanka’s government is buying back Royal Dutch Shell's stake in the part privatized gas company, Shell Gas Lanka. Shell’s decision to sell follows long running quarrels with the Government over the price at which the company could sell gas in the country. The $63 million sale returns the LP gas business in Sri Lanka to 100% state ownership.

President Mahinda Rajapakse’s populist government had been at loggerheads with the oil and gas giant over the price at which gas is sold: the government has been insisting gas be sold at less than international market prices.

The Sri Lankan mobile operator Dialog Axiata made a net profit of 1.69 billion rupees in the September 2010 quarter compared with a loss of 439 million rupees a year ago, Lanka Business Online reported.  While this was partially due to cost cutting, the main driver was a huge increase in sales (16.2% or 10.56 billion rupees) and the main area in which sales have increased is mobile – both phones and broadband, according to the report.

Sri Lanka’s fees for UK public relations firm Bell Pottinger (£3m) is greater than the amount pledged for development in Jaffna (£2.85m), the Sri Lanka Guardian reported today. The amount pledged for Jaffna, moreover, is uncertain to be followed through.

Whilst Sri Lanka makes much of Colombo’s soaring stock market, trading figures show foreign investors are systematically exiting the island's market. Foreign investors have so far this year sold a net 23 billion rupees' ($200m) worth of shares, Reuters reported Monday.

Moreover, the main stock index (CSE) is being pushed up by state-owned funds.

A year and a half since declaring victory over the Liberation Tigers, Sri Lanka’s proposed military expenditure for next year (almost $2bn) is an increase of 20% over 2009's and will dwarf the proposed budget for resettlement ($16m).

Meanwhile, the development budget is $680m, according to figures reported in the state media.