Donors read riot act, but is Sri Lanka listening?

COLOMBO, Jun 1 (Reuters) Some of Sri Lanka's main international donors have effectively pulled out of the island's peace process until the government and Tamil Tigers prove they want to avoid war, diplomats say.

The European Union, Japan, Norway and the United States -- who pledged 4.5 billion dollars to foster peace -- issued a stinging statement this week saying the foes had failed to deliver on heir responsibilities to halt a surge in killings.

The following day the European Union formalised a terror ban and asset freeze against the rebels and put the onus on both sides to curb violence.

But the Liberation Tigers of Tamil Eelam (LTTE) and the military continue to engage in near daily skirmishes in the north and east, shootings and ambushes are commonplace, and neither side seems to realise how frustrated the international community is, diplomats say.

''Based on the current deeds from both parties, we don't see we can do anything to help,'' said one senior diplomat on condition of anonymity. ''So it is a de facto unplugging of proactive co-chair (donor) involvement.'' ''It should be understood this is a very last wake-up call to the parties in the conflict,'' he added. ''Why are we pulling out? Because we don't want to be associated with war.'' Norway however, which brokered a 2002 ceasefire, is the main mediator in the conflict and is still trying to convince both sides to meet in Oslo this month to discuss the safety of Nordic truce monitors.

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