Soon after being sworn in as the fifth executive head of state, Rajapakse said he would also have a brand new cabinet and unveil a new budget that will incorporate election promises in his manifesto.

"I have decided to bring before parliament new budget proposals based on the 'Mahinda Chintanaya' (my philosophy)," he said. "I believe it is necessary to begin my term of office with the people's confidence in me intact."

The opposition had criticised the ruling party for presenting a budget that made no provisions to implement a plethora of subsidies Rajapakse pledged in his manifesto.

Rajapakse was prime minister when the budget was presented on November 8. A vote on it had been set for later this month. The new dates for the budget were not immediately known.

Analysts had warned delivery of the promised subsidies would be a formidable financial challenge to a country already reeling under high oil prices and galloping inflation.

Rajapakse, 60, narrowly scraped through in Thursday's ballot after pledging subsidies on a range of items from milk powder to fertiliser in a 20-billion-dollar economy heavily dependent on foreign remittances, clothing and tea exports and tourism.

Among the immediate priorities for Rajapakse is tackling politically unpopular reforms in the loss-making energy sector, privatisation and infrastructure, economists say.

Rajapakse will also have to deal with rebuilding the tsunami-battered coastline. Sri Lanka has received aid pledges worth 3.2 billion dollars for tsunami reconstruction. He announced a new set up to handle reconstruction, but did not give details.

He had earlier rejected plans to share tsunami aid with Tamil Tiger rebels, opposed autonomy for minority Tamils, pledged to halt privatisation of state assets and foster an inward-looking national economy.

However, on Saturday, Rajapakse said he was also keen to attract foreign investment to help create jobs.

Colombo's tiny stock market panicked after Rajapakse's victory Friday, with the benchmark All Share Price Index closing down nearly seven percent.

Some investors said then they were not convinced he could live up to promises to create 2.5 million jobs and cut prices without slowing economic growth and holding up peace talks with Tamil Tiger rebels.

However, on peace talks, Rajapakse sounded conciliatory and offered to negotiate with the rebels as soon as they were ready to enter a dialogue.

Sri Lanka's Central Bank had projected six percent growth rate this year, the fastest pace since 1997.

The growth momentum will be maintained next year, according to the outgoing Treasury Secretary P.B. Jayasundera. Rajapakse had promised six to eight percent growth.

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