PRESS DIGEST - Canada - June 10

June 10 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL:

- Voters in Nova Scotia have turned their backs on the traditional parties in unprecedented numbers, giving the New Democrats a majority to shepherd the province through economic turmoil.

- Sri Lanka deported a Canadian legislator it views as sympathetic to the Tamil Tiger separatists, the latest foreign official it has sent out of the country at the end of a 25-year war.

- The incoming head of Canada's spy agency says new rules requiring digital fingerprints and photos at foreign visa offices will be extended to every visitor from any country in the world - including close European allies such as France and Britain.

Report on Business Section:

- Banks have notched a rare victory in their fight with Ottawa over selling insurance, setting off a new round in the long-running brawl with the country's powerful insurance broker lobby.

- Oil prices soared above $71 a barrel Wednesday to reach a 2009 high, as investors poured money into crude markets to protect themselves against the inflation risks posed by a weakening U.S. dollar.

- Chrysler was a step closer to emerging from bankruptcy protection Wednesday, a day after opponents of the automaker's planned partnership with Italy's Fiat (FIA.MI) exhausted their appeals in an effort to halt the Obama administration-backed sale.

- Washington signalled a turning point Tuesday in its long-running battle to stabilize Wall Street, telling 10 of the country's largest banks they are healthy enough to begin repaying $68-billion in government aid.

NATIONAL POST

- Liberal MP Bob Rae was denied entry into Sri Lanka on Wednesday because of his outspoken views on the civil war that tore apart the island nation for 25 years, according to media reports.

Financial Post section:

- The Supreme Court Tuesday cleared the way for the U.S. government-backed sale of Chrysler LLC to a group led by Italian carmaker Fiat SpA, a victory for the bankrupt automaker and the Obama administration.