The leader of the Tamil Tiger rebels in Sri Lanka, Vellupillai Prabhakaran, has said he's prepared for a negotiated political settlement to the country's civil war.

In a speech marking his birthday, Mr Prabakharan said he would be willing to hold peace talks with the Sri Lankan government if it accepted third-party mediation.

Mr Prabhakaran has made similar offers in the past, which have come to nothing.

Correspondents say that despite the peace offer, his speech has much anti-Sinhalese rhetoric, which does not bode well for the peace process.