COLOMBO. May 4: Sri Lan ka s acting president Dingirl Banda Wijetunga Monday vowed to continue with the economic policies of hto slain predecessor Ranasinghe Pre madasa as foreign Investors nervously watched the country's political vacuum, reports AFP

Wijetunga. 71, who to almost certain to be confirmed as head of state for the 19 months remaining on Premadasa's term in office, said there will be no change in the current fiscal policies

"I am aware that a certain amount of concern exists in the minds of the business community both national and foreign regarding, the future of our economic policies

I take this opportunity to assure that there will be no change 1n the prudent fiscal policy of reducing our budget deficits and the stable micro economic policy." Wijetunga said In a statement.

His remarks came as investors adopted a walt-and-aee policy at Colombo's tiny stork exchange when trading opened for the first time since Saturday’s assassination of Premadasa by a suspected Tamil Tiger suicide bomber.

The country's investment approving agency, the Board of Investment (BOI) said It will have to "redouble" promotional activities to attract greater foreign Interest in the economy after the Premwiaaa slaying.

"Some people may postpone their Investment decisions ... we will have to redouble our efforts. That to what we are doing now," BOI's Investment Promotion Director HB Masinghe said

He was optimistic that Premadasa's murder, which came just eight days after the assassination of his main polit leal rival Lail th Athulathmudali. would not deter potential Investors In the long term.

Premadasa "was a fantastic monitoring man.* following development meticulously to ensure his comments were Implemented. Masinghe said

We have strong Institutions so we will move fro ward We

cannot go back,' Masinghe said, noting that the BOI had been directly responsible to Premadasa who had elevated Its status from a mere govern ment department

Trading fell at the Colombo stock exchange where turnover dropped by a third to 12.5 million rupee (250,000 dollar) with the Indices dropping about six points.

“There is no panic selling but everyone is adopting a wait-and-see approach. Foreign

interest was very little and only a few small parcels changed hands In the morning." CSE manager Ravi Peiris said

He said the silver fining was a bid from a "big foreign player" for a controlling interest in Hotel Services Lid. I he owning company of the deluxe Hotel Inter Continental which had no takers for quite some time.

Industries Minister and cabinet spokesman Ranll Wickremestnghe has said he hoped "things should settle down in about two weeks' and assured that the new administration would continue the policies of Premadasa.

"We have shown that despite our serious problems we have been able to prevent a breakdown," Wlckremesinghe said Sunday. The capital 1s under tight security and was brought under curfew twice in three days to prevent rioting.

The slaying has plunged the ruling United National Party into a serious leadership crisis and Wijetunga Is considered a non controversial compromise unlikely to match Premadasa's dynamism

Sri Lanka's parliament Is due to meet Tuesday to set a limetable to receive nomina- tions from parliamentarians to elect a new head of state within a week The ruling party has already decided on Wijetunga for the presidency

The UNP Is bankrupt. There to no one as dynamic as

Premadasa to replace him. The government will lack direction and this will make investors jittery." a financial analysts said