Managing development for peace: Sri Lanka

An international aid conference held in Tokyo from 9 to 10 June 2003, conducted with the participation of 51 countries and 20 international finance agencies, granted US $4.5 billion over a 4-year period to Sri Lanka. The aid, pledged by donors for development and reconstruction in Sri Lanka, was conditional upon the successful continuation of progress towards a permanent solution to the ethnic conflict. The Prime Minister promised ‘a provisional administrative structure with wider powers to the LTTE’, suggesting that the Tokyo aid would enable the implementation of a new framework to re-energise Sri Lankan peace and development. However, the aid package has elicited mixed reactions from key players. In particular, the Liberation Tigers of Tamil Eelam (LTTE) are refusing to participate in further peace negotiations until there is a more equitable distribution of resources, resulting in more aid being allocated to the areas of need in the North, East and South. That is, those areas where they wish to have greater control, and they have condemned the proposed new administrative structure.