“And we’re wondering where and how and when government aid is going to be spent.”. A marina is proposed in the prime surfing area, as well as a helipad, sea-plane landing strip, and an area allocated for 1,500 housing units for displaced residents. The six have been served notice to demolish anything they rebuilt from the foundations after the tsunami.The process of acquiring land has rolled 10 miles up the east coast, as far as Batticaloa, where local fishermen and cabana owners own their land. Even in these cases, the government is still taking the land for development – although the 200-metre zone is not yet law – promising to lease it back to the previous owners.In Arugam Bay, a fishing community which has benefited from the surfers who make the nine-hour land journey from the capital, Colombo, the plans go further.

“We had 11 boats and 15 bicycles that came into our front yard,” said Marlene Tissera, who has owned the Hideaway guest house since 1978, and is one of the six people who have been served notice to leave their hotels and cabanas, which provide modest beach accommodation. We are thinking about the higher-level tourists, not the five-dollar tourists.”The devastation in Arugam Bay is plain to see. Debris lies piled up on the side of the dusty road that runs through the community; a bus, parked by a wave, still stands battered, windowless and water-marked. Detailed maps obtained from a tourist board meeting with residents on 17 May show new hotels near the beach and within the buffer zone, confirming the locals’ fears about the development along the miles of newly vacated sand space. The isolated bay is a curved beach with white sand, lined with palm trees, and considered one of the top 10 surfing destinations in the world.Mr Nanayakkara told the meeting, according to the minutes: “Maybe your forefathers lived in that area, but the 860 acres belongs to the government It will be developed as a tourist zone. We will put up buildings and develop the area and we will ask you to come and work there. FKI fails to excite but hold on for the yield No, you can’t say that we make conveyor belts.

Shortly, it will launch “binary bets”, aimed at the bored trader who wants a bald punt on whether an index or stock will be up or down over a given period. IFX, which owns the spread betting firm Finspreads, has been a disappointment over the past couple of years, most recently because it lost a load of money to its foreign exchange clients when the dollar collapsed last year.The company promises it has tightened up its internal risk management procedures, to make sure it is never out on a financial limb, and now would seem an opportune moment to take a punt on IFX shares.They were up 2.5p to 110p yesterday after results which showed an improving trading performance. There are also moves afoot to start marketing in China and other overseas territories.Investor interest in this business has been piqued by the recent float of rival IG Group Have a flutter. Its clients tend to bet more when financial markets are volatile, and volatility is up.IFX is operating in a highly competitive market, with new spread betting outfits springing up to offer basic bets, and forcing IFX to launch more sophisticated instruments. Persimmon’s premium to the sector, admittedly the result of its strong operating record, makes it look vulnerable. But Wilson Bowden, which also has an experienced management, looks too cheap compared with the value of its assets.So, what is Morgan Stanley’s favourite? It is Redrow. Its shares have underperformed its peers, but it has been testing a new “Debut” branded housing for first-time buyers, which gives it a competitive edge and allows it to tap a very strong latent demand for affordable homes.Time is right for a flutter with IFXHere’s a real gambler’s stock.

This will be a particular struggle for George Wimpey because it is resistant to part-exchange marketing deals. Its shares have an “underperform” rating.Differences in share price valuations should also be a part of calculations. It is no coincidence that Barratt, with 49 per cent of its output being flats, is also the most heavily reliant on buy-to-let purchases, which might dry up if it looks as though there will be little capital gain from a buy-to-let investment.To make up for slower inflation and to try to match 2004’s record year, most housebuilders are hoping to step up the numbers of homes they sell. “In a more challenging ‘buyer’s market’, we believe that apartments will fall out of favour relative to houses. In addition, these same apartments have greater interest from the more discretionary buy-to-let investor,” the analysts wrote.As you can see from our graphic, Barratt Developments is looking dangerously exposed if buyers find they can afford to go after houses instead of settling for a flat. You’ll want to be in the right stocks.Which is why an investment note published by Morgan Stanley is coming in so useful in the City.