A Sri Lankan soldier patrols in the Jaffna peninsula in April 2008. Sri Lanka plans to raise its defence spending in 2009 by seven percent to maintain a massive ground, sea and air offensive against Tamil Tiger rebels, official data showed Thursday. (AFP/File/Lakruwan Wanniarachchi)Where Does Sri Lanka's War Go If Rebel Capital Falls? -- Reuters
COLOMBO (Reuters) - Sri Lankan soldiers on Friday were within 3.5 km (2 miles) of Kilinochchi, the headquarters town of the Tamil Tiger separatist rebels they have fought since 1983 in one of Asia's longest-running wars.
Here are some possible scenarios for what happens if the army takes Kilinochchi, a symbolic target:
MORALE, MARKET BOOST: Taking Kilinochchi would by no means mean an end to the war, but it would be a major political boost to President Mahinda Rajapaksa's government and also to the armed forces' morale. Most financial analysts expect a very short-term rally on the Colombo Stock Exchange. But it has generally moved on its own fundamentals since the war has been running so long and players are used to it. The rupee currency is unlikely to be affected, since the Central Bank routinely intervenes to prevent any rapid movement.
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More News On Sri Lanka's Civil War
Sri Lankan conflict enters critical phase -- Janes
Sri Lankan Military Jets Target Tamil Tiger Political Chief -- Bloomberg
Sri Lankan military bombs rebel group's headquarters -- The International Herald Tribune
Sri Lankan Military Pounds Rebel Stronghold -- Voice Of America
LTTE military complex bombed -- The Hindu
5 rebel bases bombed by Sri Lankan air force -- USA Today
Explosives found on Sri Lanka aid truck, war kills 30 -- Reuters
What have the LTTE’s NGO/INGO friends being doing in Sri Lanka? -- Asian Tribune
UN sends Sri Lankan food convoy -- BBC News
UN convoy brings food to region controlled by Tigers, under attack -- Asia News
SRI LANKA: Supply convoy reaches Tiger areas -- IRIN
Sri Lanka hikes war budget -- AFP
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