Sri Lanka's President Chandrika Kumaratunga swore in the country's 13th prime minister, betting he will be able to create jobs and cut prices without crimping economic growth or delaying peace talks with Tamil Tigers.

Investors aren't convinced. Three blocks from where 58-year- old Mahinda Rajapakse was reading the oath of office at the president's official residence, the Colombo Stock Exchange's benchmark index plunged, falling 9.5 percent, its third-biggest one-day percentage drop on record. [Read more]