Sri Lanka talks to focus on money

The two sides will discuss revenue-sharing

The Sri Lankan Government has said it will discuss revenue-sharing with Tamil Tigers rebels.

Government chief negotiator, GL Peiris said the proposal will be discussed at the next round of peace talks in Japan next month.

The peace talks with the Sri Lankan government will undoubtedly be seriously jeopardised if such incidents continue

Anton Balasingham

The move follows an agreement in November that the two sides would explore a model for power-sharing between the central government and a regional Tamil-controlled area.

But earlier, the chief negotiator for the Tamil Tigers, Anton Balasingham, warned that a dispute over military-style belts worn by female Tamil Tigers could jeopardise the ongoing peace talks.

Injuries

Four male soldiers and three Tamil Tiger women cadres became involved in a fistfight on Wednesday in the northern town of Jaffna after the rebels refused to give up their belts.

Two of the women were injured.

The belt worn by the Tigers has triggered controversy

Mr Balasingham told the Tamil Guardian newspaper: "We condemn this brutal attack on our cadres - in the strongest terms."

He described the incident as "an intolerable provocation," and added: "The peace talks with the Sri Lankan Government will undoubtedly be seriously jeopardised if such incidents continue."

A spokesman for the international cease-fire monitoring team said the women's belts constituted a uniform and were therefore a violation of the cease-fire agreement.

Own administration

At the end of the fifth round of talks in Germany last week, the two sides agreed to begin to plan a process of power-sharing.

The rebels, who run their own administration in areas they control in the north and east, have their own system of taxation on goods and services across rebel territory.

It is essential that progress is made on key issues such as revenue-sharing ahead of a major donor conference scheduled to take place in Tokyo in June.

The move is aimed generating millions of dollars in aid to rebuild the nation.

Japan is currently Sri Lanka's biggest aid donor.