Colombo: Sri Lanka's political crisis between the President and the Prime Minister is certain to bruise both and likely to end up with the country plunged in an expensive snap election.

Neither President Chandrika Kumaratunga nor Prime Minister Ranil Wickremesinghe can claim sufficient numbers in parliament to dislodge the other and the beneficiary of an early election could be Tamil Tiger rebels.

Tamil politicians believe that a snap poll could encourage Tamil Tigers to enter the fray, possibly through proxies, and emerge possibly the third largest party in the island.

"The Tigers are looking for legitimacy and a snap poll could give them a window of opportunity to get just that," a Tamil legislator said on condition of anonymity.

Lands Minister Rajitha Senaratne said the Government was keen to battle it out with the President and emerge stronger, but admitted that it would still be at the expense of a dented image in the eyes of foreign investors.

"We need to assert ourselves and take back what has been taken," Senaratne said. "If we don't, it sends the wrong signal. If we do, still foreigners would still be worried about investing."

Fears of a return to war saw the Colombo stock exchange lose 20 pc in two days. The value wiped off the shares in Colombo in the two days was 67 billion rupees ($ 712 million).

PTI