07-28-2004, 05:24 PM
<span style='color:red'><b>Sri Lanka Peace Talks Won't Resume Soon, Norway Says </b>
[size=9]July 28 (Bloomberg) </span>
Norway, which mediates Sri Lanka's peace process, said peace talks between the government and the Liberation Tigers of Tamil Eelam are unlikely to resume soon.
The peace mediator who brokered a cease-fire agreement in the South Asian island nation two years ago, said it remains committed to helping both sides resolve differences to end a two decade civil war.
``Peace talks in Sri Lanka are not likely to resume in the near future, but we're not abandoning the peace process,'' said Norway's Deputy Foreign Minister Vidar Helgesen at a press briefing in garden cafe in Colombo, the capital.
The lack of progress in peace talks, which have been stalled since April last year, is threatening a cease-fire agreement reached in February 2002 that halted one of Asia's longest civil wars. President Chandrika Kumaratunga's government won power in April's election.
The stalemate worsened after the Liberation Tigers accused the government of supporting a breakaway rebel faction, a charge denied by Kumaratunga. Killings and violence have erupted since the faction broke away in March, threatening the truce.
The Tamil Tiger rebels said the partners in the coalition government won't be able to agree on discussing autonomy for the Tamil region in peace talks.
Interim Authority
Kumaratunga said yesterday her government was willing to start talks on an interim authority within the federal state, a demand made by the Tamil Tigers for resuming negotiations. Janatha Vimukthi Peramuna, a Marxist-oriented political party in the coalition, opposes autonomy for the rebels.
Kumaratunga ``has indicated this, but we want to see how the JVP react,'' Daya Master, a rebel spokesman said in a phone interview from Kilinochchi in the rebel-controlled north. ``We don't believe they will agree to this. We will wait because we are committed to the peace process.''
Sri Lanka's stock index, though, rose to a record at the start of today's trading. The benchmark Colombo All-Share index rose 4.81, or 0.3 percent, according to preliminary figures from the Colombo Stock Exchange's Web site.
``Sri Lanka's peace process is going through a real rough patch and I don't think the stock markets are going to continue rallying like that, the confidence will fade,'' said S. Jeyavarman, who manages $26 million as chief executive officer of National Asset Management, Sri Lanka's largest unit trust.
Rupee Falls
The Sri Lankan rupee fell to a fresh record today, dipping to 103.55 against the U.S. dollar as investors fret over the failure by Norway to revive peace talks on its latest mission.
Norway's Helgesen held talks this week with Kumaratunga and S.P. Thamilchelvan, the political chief of the Liberation Tigers. He didn't comment after a meeting with Prime Minister Mahinda Rajapakse today in Colombo. Rajapakse refused to comment on the meeting, saying it was a courtesy call.
Helgesen told Kumaratunga there was no agreement on the proposed agenda for the start of peace talks, the president's office said in an e-mailed statement.
A permanent peace accord is key to economic growth on the Indian Ocean island, in part because donors including Japan, the U.S. and the European Union have pledged about $4.5 billion in aid on condition talks resume.
[size=9]July 28 (Bloomberg) </span>
Norway, which mediates Sri Lanka's peace process, said peace talks between the government and the Liberation Tigers of Tamil Eelam are unlikely to resume soon.
The peace mediator who brokered a cease-fire agreement in the South Asian island nation two years ago, said it remains committed to helping both sides resolve differences to end a two decade civil war.
``Peace talks in Sri Lanka are not likely to resume in the near future, but we're not abandoning the peace process,'' said Norway's Deputy Foreign Minister Vidar Helgesen at a press briefing in garden cafe in Colombo, the capital.
The lack of progress in peace talks, which have been stalled since April last year, is threatening a cease-fire agreement reached in February 2002 that halted one of Asia's longest civil wars. President Chandrika Kumaratunga's government won power in April's election.
The stalemate worsened after the Liberation Tigers accused the government of supporting a breakaway rebel faction, a charge denied by Kumaratunga. Killings and violence have erupted since the faction broke away in March, threatening the truce.
The Tamil Tiger rebels said the partners in the coalition government won't be able to agree on discussing autonomy for the Tamil region in peace talks.
Interim Authority
Kumaratunga said yesterday her government was willing to start talks on an interim authority within the federal state, a demand made by the Tamil Tigers for resuming negotiations. Janatha Vimukthi Peramuna, a Marxist-oriented political party in the coalition, opposes autonomy for the rebels.
Kumaratunga ``has indicated this, but we want to see how the JVP react,'' Daya Master, a rebel spokesman said in a phone interview from Kilinochchi in the rebel-controlled north. ``We don't believe they will agree to this. We will wait because we are committed to the peace process.''
Sri Lanka's stock index, though, rose to a record at the start of today's trading. The benchmark Colombo All-Share index rose 4.81, or 0.3 percent, according to preliminary figures from the Colombo Stock Exchange's Web site.
``Sri Lanka's peace process is going through a real rough patch and I don't think the stock markets are going to continue rallying like that, the confidence will fade,'' said S. Jeyavarman, who manages $26 million as chief executive officer of National Asset Management, Sri Lanka's largest unit trust.
Rupee Falls
The Sri Lankan rupee fell to a fresh record today, dipping to 103.55 against the U.S. dollar as investors fret over the failure by Norway to revive peace talks on its latest mission.
Norway's Helgesen held talks this week with Kumaratunga and S.P. Thamilchelvan, the political chief of the Liberation Tigers. He didn't comment after a meeting with Prime Minister Mahinda Rajapakse today in Colombo. Rajapakse refused to comment on the meeting, saying it was a courtesy call.
Helgesen told Kumaratunga there was no agreement on the proposed agenda for the start of peace talks, the president's office said in an e-mailed statement.
A permanent peace accord is key to economic growth on the Indian Ocean island, in part because donors including Japan, the U.S. and the European Union have pledged about $4.5 billion in aid on condition talks resume.
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