The president stressed the need for law and order
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Sri Lanka's president has come under fierce attack for her decision to suspend parliament and sack key ministers on national security grounds.
Sri Lankan Foreign Minister Tyronne Fernando told the BBC President Chandrika Kumaratunga had misjudged the country's security situation.
"It appears that the president unfortunately has acted in great haste right at the time when the peace process is gaining momentum."
The ceasefire with the Tamil Tigers, brokered by Norwegian mediators and signed in February 2002, will hold, a presidential advisor said on Wednesday.
"There is no question about that," Lakshman Kadirgamar told reporters.
The Tigers have dropped a demand for independence in favour of regional autonomy.
"The peace dividends were going to be put to the budget in early November," said Mr Fernando.
The suspension of parliament until 19 November means the budget is likely to be put on hold.
'Anarchy' threat
In a nationwide address on Tuesday, President Kumaratunga accused the government of making too many concessions to Tamil Tiger rebels.
Her Sri Lanka Freedom Party, which is the parliamentary opposition, expressed concern about the Tigers' proposals for a self-governing authority in the north-east of the country.
The president had been at odds with several ministers
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Prime Minister Ranil Wickramasinghe has accused her of bringing Sri Lanka to the verge of anarchy and chaos.
Her decision to sack the information, defence and interior ministers, suspend parliament and deploy troops around key buildings in the capital, Colombo, stunned the country and brought howls of protest from her political rivals.
President Kumaratunga accused Mr Wickramasinghe of giving too much ground to the Tamil Tigers.
The prime minister, who was on a visit to Washington when the news came, said the president had endangered efforts to end Sri Lanka's long civil war.
But President Kumaratunga was unrepentant.
"The maintenance of law and order is one of the paramount duties cast on me under the Constitution," she said, appealing to Sri Lankans to remain calm.
Mrs Kumaratunga insisted that her actions were not directed at any one party or individual and stressed that she remained committed to a peaceful resolution of Sri Lanka's long-running ethnic conflict.
"I wish to assure the minorities of the country, especially the Tamil and Muslim communities that their concerns will be given due and serious consideration in trying to reach a negotiated settlement."
International concern
India expressed "surprise" at the "sudden political developments" in its southern neighbour.
"We hope that the situation does not provoke a constitutional crisis which would impact on the political stability in Sri Lanka and on the ongoing peace process" with the Tamil Tigers, said a Foreign Ministry spokesman in Delhi.
President Kumaratunga is due to visit India at the end of the week for a Unicef meeting.
The Tamil Tigers have so far only said they are monitoring the situation, but a pro-Tigers website said the president's actions have "dimmed" the prospects for peace.
The European Union has warned that the sackings could endanger progress in the peace process.
The White House has stressed that a planned meeting between Mr Wickramasinghe and President Bush will go ahead as planned on Wednesday.
"We're firmly supportive of the peace process and strong democratic institutions in Sri Lanka," said Sean McCormack, a White House spokesman.