Sri Lanka impasse 'threatens aid'

Yasushi Akashi [C] said Japan wanted the leaders to work together

International donors meeting in Sri Lanka to discuss releasing billions of dollars of aid have expressed deep concern at the political crisis.

A three-month deadlock between president and prime minister has blocked any progress in the peace process with Tamil Tiger rebels.

The donors say $4.5bn pledged to rebuild the island could be in danger.

The Tamil Tigers refused to attend the one-day donor meeting, saying the political situation was too unstable.

Japan's special representative to Sri Lanka's peace process, Yasushi Akashi, who chaired Friday's meeting, said: "There was serious concern expressed about the political situation."

He said Japan wanted the two leaders to try to work together.

Tied to progress

President Chandrika Kumaratunga has accused Prime Minister Ranil Wickramasinghe of yielding too much ground to the rebels during a ceasefire that has lasted since February 2002.

Their differences erupted in November when President Kumaratunga dismissed three ministers and took direct control of the defence portfolio

Norwegian peace mediators then suspended their role, saying it was unclear who was in charge of the government.

President and premier have been deadlocked for three months

The BBC's Frances Harrison in Colombo says Japan has played a pivotal role in raising funds for the peace process, underpinning the political work of Norway and moral support from the United States.

But the $4.5bn pledged by foreign donors in Tokyo last year is tied to progress in the peace talks.

Mr Akashi said he felt there was still life in the peace process and the donors were steadfast in their support.

But he warned aid flows could be impeded if the present situation continued, even if the ceasefire remained in place.

Mr Akashi also had tough words about the new political alliance the president formed this week with former leftist revolutionaries who have rejected the peace process as a threat to national sovereignty.

Mr Akashi said the alliance was a cause for concern: "It is not a good development... Democracy should not degenerate to populism."

Funds not released

The Tamil Tigers told Mr Akashi on Thursday that they would not be attending the meeting.

Rebel leader SP Thamilselvan said: "We declined to accept Mr Akashi's invitation... because there is no political stability and unified leadership of the government in Colombo now."

The Tigers abandoned peace talks last April, saying the government was not doing enough to rebuild the north and east.

So far none of the international aid money has been released although some ongoing projects have been financed.