Donors say Lanka aid depends on end to fighting

Tokyo, May 30: Sri Lanka's four main donors today urged the government and Tamil Tiger rebels to halt violence and honour their ceasefire agreement if they wanted financial aid to continue.

Special envoys from Japan, Norway, the European Union (EU) and the United States who together have pledged 4.5 billion dollars in aid to foster peace in Sri Lanka also said after a meeting in Tokyo that the rebels should re-enter negotiations.

Diplomats in Brussels said yesterday that the EU had listed the Liberation Tigers of Tamil Eelam (LTTE) as a banned terrorist organisation amid a sharp escalation in attacks and clashes with Sri Lanka's military.

Donor countries said they had provided 3.4 billion dollars to Sri Lanka over the past three years. More than 20 per cent of that financial assistance has been allocated to the northern and eastern parts of the country, including Tamil Tiger controlled areas, they said in a statement.

''As long as the commitment to the cease-fire agreement by both parties is proven by way of their actions, the international community will continue its assistance,'' the statement said.

Japan's special peace envoy, Yasushi Takashi, said Tokyo might follow the EU's lead and freeze the Tigers' assets if the group kept up its violent activities.

''It is possible for Japan to consider and decide to freeze assets for the LTTE if they keep repeating their violent activities,'' Akashi told the news conference.

The donors called on both sides to stop fighting and return to the peace process.

''LTTE must re-enter the negotiating process. It must renounce terrorism and violence,'' the statement said. ''It (the government) must immediately prevent groups based in its territory from carrying out violence and acts of terrorism.'' But the donors said there was still hope for peace.

''While the situation gives cause for grave concern, the co-chairs concluded that the ingredients for a peaceful settlement remain present,'' the statement added.

Norway's Erik Solheim, who brokered a four-year-old ceasefire, told the news conference that the donors were calling on the two sides to come to Oslo, Norway next week for talks.

''We see this meeting as a first step back to the peace process,'' he said.

Reuters