But Germany has categorically ruled out direct recapitalizations by the European Stability Mechanism, reneging on the solution apparently agreed by euro-zone leaders last June.
The announcement comes amid growing consensus in Washington that the federal response to the credit crisis has fallen short of a solution that would restore confidence and stability in the financial markets.
Although such realignments are fairly common in Sri Lanka, the current epidemic of political manoeuvring renders the immediate prospects for stability, or for progress towards a negotiated solution to the civil conflict, unpromising in the extreme.