The recognition of a balanced approach on security and humanitarian needs, had the effect of reducing tension, but no agreement was reached on reviving the Sub-Committee on De-escalation and Normalization (SDN). In December, The LTTE refused to participate in the SDN, after Jaffna Army commander Sarath Fonseka demanded the LTTE to disarm. The government invited former Indian Army officer Satish Nambiar in late January to study the problem of HSZs. He is also said to conclude that decommissioning of heavy weapons by the LTTE must precede resettlement.
At the peace talks, both parties confirmed the Sub-Committee on Immediate Humanitarian and Rehabilitation Needs (SIHRN) as the prime decision making body on needs in the north-east. They welcomed the establishment of the North-East Reconstruction Fund (NERF) and the decision of SIHRN to select the World Bank as the custodian of the Fund. The Bank's Vice President Meiko Nishimizu held discussions with the government and LTTE in mid-January.
Decisions at the talks included the preparation of a schedule on human rights by international expert Ian Martin, for discussion at the next talks. The ICRC will help in an independent verification mechanism for persons missing in action and disappearances. The government and the LTTE will also meet monthly to discuss ceasefire violations.
Over 10,000 people took part in a demonstration on 8 January in Colombo by the opposition People's Liberation Front (JVP). The JVP is currently engaged in negotiations with the main opposition People's Alliance (PA) on an agreement for future cooperation against the ruling United National Front (UNF).
PA leader President Chandrika Kumaratunge claimed in early January that the negotiations between the two opposition parties were not aimed at disrupting the peace process. She called for the recognition of PA’s peace proposals of 1997 as the basis for a political solution to the Sri Lankan conflict. The LTTE and most other Tamil parties rejected these proposals on the basis that they were inadequate and failed to recognise the Tamil right to self-determination and the north-east Tamil homeland.
The President also demanded that the LTTE should decommission and disband the Black Tiger suicide unit. Rejecting her call, LTTE’s Anton Balasingham declared that disarmament would be suicidal for the LTTE and until a permanent solution is achieved, Tiger military power will remain intact. In late January, Prime Minister Ranil Wickremasinghe put an end to the debate on disarmament when he conceded that the issue cannot be discussed until permanent peace.
President Chandrika continued to blame the government for failing to keep her informed of developments in the peace negotiations and warned that she had the power to sack the Prime Minister and the Cabinet. After 5 December, she also has the authority to dissolve Parliament. The President and her party, the PA, have also been engaged in a vilification campaign against the Norwegian peace facilitators.
President Chandrika and Prime Minister Ranil met on 21 January to discuss the HSZs. The President urged Ranil to take action to prevent human rights violations by the LTTE in north-east Sri Lanka, particularly child recruitment, abductions and extortion. The President also stressed the need to strengthen relations between government and opposition. Press reports say that the government may consider including a representative of the President in the peace talks.
Sources say that these apparent attempts at cooperation are misleading. The UNF and the PA are undermining each other at every opportunity and in the circumstances cohabitation between them is almost impossible. The two parties have already initiated campaigns at district level in the expectation of a general election in the near future.
Japan's peace envoy Yasushi Akashi said at a press conference in Colombo on 18 January that he had consultations with Indian leaders, including Prime Minister Atal Behari Vajpayee, to explain the role of Japan in Sri Lanka. A former Under-Secretary General of the United Nations, Mr Akashi was appointed by the Japanese Cabinet in October last year as a special representative to contribute towards peace-building, rehabilitation and reconstruction in Sri Lanka.
Mr Akashi said that India is anxious that a solution to the Sri Lankan conflict should not affect the regional power’s security concerns in the Indian Ocean. Press reports suggest that India is worried over increasing involvement of other nations in Sri Lanka and has indicated that Japan can assist in rehabilitation and reconstruction, but may not become a fourth party in the peace negotiations.