Hawk named as Sri Lanka premier

Mr Wickremanayake (right) has been prime minister before

Sri Lanka's newly-elected president, Mahinda Rajapakse, has appointed a hardliner as his prime minister.

Ratnasiri Wickremanayake took his oath on Monday for the largely ceremonial post, a government spokesman said.

The country's stock market fell sharply on news of the appointment, which is seen as reinforcing the hawkish stance of the president towards Tamil rebels.

Like Mr Rajapakse, Mr Wickremanayake is a Sinhala nationalist. The former was premier until winning the presidency.

Other cabinet posts are still being finalised, officials said.

President's pledge

Mr Wickremanayake, 73, briefly served as prime minister under former president Chandrika Kumaratunga between 2000 and 2001.

I will bring about an honourable peace to the country, respecting all communities Mahinda Rajapakse Send your reaction to result What next for Sri Lanka? Tamil Tigers warn winner

Under Sri Lanka's constitution, the prime minister's role is overshadowed by the much more powerful post of executive president.

Mr Wickremanayake has previously advocated a military solution to the conflict with the Tamil Tigers, who have fought a 30-year campaign for a separate homeland for minority Tamils in Sri Lanka's north and east.

He has also been a strong critic of Norway's role as negotiator in the deadlocked peace process, and his tough rhetoric against the rebels has been popular within the Sinhalese community.

Sri Lanka's stock market continued to slide for a second day as traders reacted to Friday's victory by the left-of-centre Mr Rajapakse.

Shares closed down just over 7% on Monday. A fall of just under 7% was recorded on Friday, when Mr Rajapakse's win was announced.

He was sworn in on Saturday, after winning just over 50% of the vote in last Thursday's election.

In his first address to the nation as president, he said he was "dedicated" to upholding a fragile ceasefire with Tamil Tiger rebels, but said voters had rejected any efforts to divide the island.

Observers said the hard line on talks with the Tamil Tigers he had adopted during the election campaign had softened slightly in his inaugural address.

Tiger warning

About 60,000 people were killed in Sri Lanka's civil war before a ceasefire in 2002 and inconclusive peace talks which stalled in 2003.

Voter reaction: Rajapakse 'will not bring war' In pictures

Mr Rajapakse said his government would uphold the truce, but added: "I am also ready to review the ceasefire agreement."

Almost no Tamils voted in areas under the control or influence of the Tamil Tiger rebels.

The BBC's Sinhala service editor Priyath Liyanage says Mr Rajapakse's main challenge now will be to hold together his coalition, which includes Communists, nationalists and Buddhists.

A socialist, the new president has vowed to reject the "neo-liberal" economy and reverse privatisations.

That would bring him into conflict with the World Bank - a serious matter for a country which relies heavily on foreign aid, our correspondent says.

The Tamil Tigers warned Mr Rajapakse not to use his victory to adopt "military means to occupy our land or wage a conflict".