Lanka offers cash, devolution to end ethnic bloodshed

President Mahinda Rajapakse told a 15-member multi-ethnic panel appointed by him last week to come up with a formula that could lead to a new constitution that will grant extensive devolution of power to minority Tamils.

"Any solution must be seen as one that stretches to the maximum possible devolution without sacrificing the sovereignty of the country given the background to the conflict," the president said.

"It is only by doing so that the aspirations of the Tamil people can be addressed, not through streams of blood and shattered limbs."

He reiterated that than an invitation to the rebel Liberation Tigers of Tamil Eelam (LTTE) to enter negotiations with the government was still open.

"I have invited the LTTE to engage itself on this process. It is only by doing so that the aspirations of the Tamil people can be addressed, not through streams of blood and shattered limbs."

More than 60,000 people have been killed in the island's drawn out Tamil separatist conflict since 1972.

"Having suffered much over these decades of a war imposed on them by the LTTE, we must create a safe, stable and meaningful environment that enables the impoverished in the North and the East to participate in economic activity...

"The government has allocated 1.25 billion dollars for this purpose and we are encouraging active private sector and international agency involvement in the development of the (embattled) North and the East," the president said.

He did not go into details of how the money would be spent, but said the international community too was keen to participate in the reconstruction efforts.

The president said the formula that his advisory committee comes up with would be presented to a wider "All Party Conference" for adoption and form the basis for future negotiations with the Tigers.

However, there was no mention of a timeframe for the advisory committee to conclude their work. He said he wanted the advisory committee to study devolution models from countries such as Canada, India, Switzerland and Australia.

The 15-member committee comprises representatives of the majority Sinhalese and minority Tamil and Muslim communities.

Government spokesman Keheliya Rambukwella said the government was ready to revive talks with the LTTE, who suspended their participation in Norwegian-brokered peace talks in April 2003.

Sri Lanka in 2002 offered wide autonomy to minority Tamils in exchange for peace.

The Tigers have also put down in writing their demands for an "Interim Self-Governing Authority" but the initiatives remain in limbo and there have been no direct discussions on power-sharing between the two sides.