The month of May saw a flurry of diplomatic activity to persuade the Tigers to resume peace negotiations and to participate in the international aid conference in Tokyo on 9 and 10 June. Japan’s special envoy Yasushi Akashi held talks with LTTE leader V Prabhakaran in the Vanni on 7 May. Norway’s Foreign minister Jan Petersen met the Tiger leader on 15 May and this was followed two days later by a meeting between LTTE’s SP Thamilchelvan and Norwegian Deputy Foreign minister Vidar Helgesen.
Mr Prabhakaran deplored that the Sub-Committee on Immediate Humanitarian and Rehabilitation Needs (SIHRN) had become ineffective and stressed the importance of implementing all decisions taken at the six rounds of peace talks. He insisted that some 100,000 internal refugees should be allowed to resettle in military high security zones (HSZ) in the north-east region and criticized the Sri Lankan government for seeking Indian advice on HSZs.
The LTTE leader’s main demand was the establishment of an interim administration for the north-east. He emphasized that an efficient, transparent and accountable interim structure with ‘adequate legal authority’ was needed for successful implementation of rehabilitation and reconstruction projects without delay, corruption or bureaucratic obstacles.
In response to the Tiger demand, the government submitted proposals for a three-layered structure - an interim Apex Body to carry responsibility for planning, prioritizing and monitoring programmes in the north-east. The Apex Body will reflect the ethnic composition of the north-east and will directly determine utilization of the resources from the North East Reconstruction Fund (NERF). There will be a Management Board chaired by a Special Commissioner which will co-ordinate implementation of projects by government agencies and NGOs. The proposals also provided for a Development and Reconstruction Council (DRC).
In letters to Vidar Helgesen on 21 May, and Prime Minister Ranil Wickremasinghe on 30 May, LTTE’s chief negotiator Anton Balasingham said that government proposals failed to define powers and functions of the decision-making bodies and to offer significant participatory role for the LTTE. He also condemned the proposal to give the donor community the final determination over the establishment of the DRC. He stated that the proposals ignored the reality that the LTTE runs a de-facto administration in the north-east.
The Prime Minister replied Mr Balasingham’s letter on 1 June, assuring that the Apex Body would have ‘adequate administrative authority’ and will play a dominant role in strategic decision making in respect of rehabilitation and reconstruction. The PM also pledged that the LTTE would have a majority voice in the Apex Body, subject to effective safeguards mutually agreed upon for Muslim and Sinhalese interests.
While the parties to the conflict and international diplomats were involved in constructive efforts, President Chandrika Kumaratunge added another problem to the crisis-ridden government in Sri Lanka on 9 May by wresting control of the Development Lotteries Board (DLB) from Economic Reform and Science minister Milinda Moragoda.
When the take over of the DLB became public, over 200 ruling United National Front (UNF) supporters entered the Government Printers in Colombo’s Borella suburb and smashed equipment, furniture and vehicles, in an attempt to prevent the President’s order being printed and published in the Government Gazette. Thereafter, the police closed and sealed the press on the directions of the government.
The DLB was established in 1983 and since 1997 is covered by an Act of Parliament. Profits of the DLB go into the President's Fund and the money is used for postgraduate scholarships to underprivileged students and assistance to the poor, particularly for medical treatment. In May, the President allocated Rs 100 million from the Fund for flood relief. She alleges that the government is preventing DLB money to the Fund.
The President took over the DLB by an order under Article 44 of the Sri Lankan Constitution, which allows her to change the functions assigned to a Cabinet minister at any time. Opposition People’s Alliance (PA) supporters argue that the order came into force when it was signed by the President, but UNF members contend that it would become effective only when it is published in the Government Gazette.
Violence erupted in Puttalam District as a consequence of the DLB issue. On 13 May, suspected UNF supporters entered to house of PA local council member D Sirisena at Mathurankuli and caused extensive damage. A rice mill belonging to PA local councillor W Dayaratne at Mellankulam was also damaged. Observers say the President has taken the first step towards her aim of destabilising the government. They warn that the power struggle between the President and the Prime Minister could irrevocably damage the peace process.