As foreign investors sold their shares in the Colombo Stock Exchange Tuesday, the Central Bank stepped in to preserve the value of the rupee.

By selling SLR 788 million in stock, foreign investors were heavy net sellers as Sri Lanka’s stock exchange resumed trading Tuesday after the Christmas holidays. Despite the foreign disinvestment, the main All Share Price Index gained 0.54 percent (32.51 points) to 6,015.09 as local investors (mainly government institutions) stepped in to buy.

A close associate of the Rajapakse clan has been arrested in connection with the murder of a British tourist and the suspected rape of his Russian girlfriend.

Kuram Shaikah Zaman, who was 27 years old was killed on Christmas eve after intervening in a dispute between locals in Tangalle.

The Sri Lankan army, having been whale-watching, sold vegetables and run hotels, are now trying their luck with herding cattle.

Stray cattle in the Vanni have been herded and are being returned to civilians according to military officials.

Lt. Col. P.A. Dayananda, also known as the military's chief coordinator of civil affairs, stated that of the 10,000 stray cattle identified, 2500 have been returned to their "rightful oweners".

Speaking in Tamil during parliament on 21/12/11, TNA MP, Mavai Senathirajah, stated the TNA will never succomb to the Sri Lankan state's oppression.

See video for speech in full, extracts translated below.

Several journalists have faced death threats and intimidation after reporting on the murder of a British tourist in southern Town of Tangella on the 24th of December.

Eyewitnesses have reported that Sampath Vidanapathirana, chairman of the Tangalle Pradesheeya Sabha (regional council), had been seen arguing with the couple at the Nature restaurant in Medilla, shortly before the attack took place.

Crimes by former and current members of the Sri Lankan security forces are on the increase, the Sunday times reports.

The paper details in its article several crimes committed, including the killing of MP Bharatha Lakshman and grease devil attacks in the Tamil homeland.

Extracts from the report:

"Investigations into recent crimes, have revealed a disturbing trend of the involvement of members of the armed forces who have deserted as well as those still serving.

Incarcerated, former commander of the Sri Lankan Army, Sarath Fonseka, is to be ignored in the write-up of the new chapters of the Sri Lankan epic, the Mahavamsa, The Sunday Leader reports.

Three new chapters are going to be added to the chronicles of Sri Lankan history, which covers "the life and times of the people who forged Sri Lanka, from the coming of Vijaya in 543 BCE to the reign of King Mahasena (334 – 361); from the 6th Century BC to the 4th Century AD."

Another volume, the Culavamsa covers the period from the 4th Century till the British colonisation.

Motorists across Colombo are in danger from giant electronic billboards of Sri Lanka's president, Mahinda Rajapaksa, warned the Colombo Municipal Council (CMC).

Rajapaksa's cut outs and billboards could distract unsuspecting motorists the CMC asserted.

India expects Sri Lanka to "act decisively" to achieve a "political settlement based on the devolution of power' announced the External Affairs Ministry in a statement made Sunday on the release of the LLRC report.

Urging resettlement and normal civilian life, India continues to avoid the issue of accountability and justice.

The ministry's spokesperson, Vishnu Prakash, said,

Political parties and police are amongst the most corrupt in Sri Lanka, according to a survey of South Asian countries by Transparency International.

The anti-corruption organization surveyed six countries and found that more than one in three people said they pay bribes when dealing with public services.

“In previous surveys of this nature, only Sub-Saharan Africa had a higher rate of bribe-paying,” Transparency International said in its press release.