Over three decade long separatist war is going to end in near future. With the capture of A9 road & Elephant pass on 9th January 2009 land route can be opened to Jaffna.

Sri Lanka is ready to record significantly higher GDP growth compared to other developing countries. Reason is contribution of agricultural produces from Eastern province & expected increased economic activities with opening up A9 road.

Six months ago country’s inflation was around 28%, now it has fallen to 14.4% in December 2008. According to forecast of Central Bank within 2009 inflation will record single digit figure.

Now look at the Colombo Market. Most of companies are trading at below their book value. Indices have fallen to historically low levels. Within year 2008 market dropped nearly 40%. Now think, in near future Colombo market will turn to positive & perform better than other regional stock markets or even developed once.

It is time to analyze individual stocks & select that performed well in pervious bull runs. Do not forget to consider current financial positions of selected companies as you can’t depend only on past performance.

Good luck!

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