India urges political solution in Sri Lanka

Indian and Sri Lankan foreign ministers had two rounds of talks

Indian Foreign Minister Jaswant Singh has urged Sri Lanka to move towards a political solution to the ethnic strife in the island nation.

He has also pledged $100m loan to Sri Lanka for humanitarian purposes.

"For the attainment of lasting peace it is necessary that a political process towards devolution be set in motion," Mr Singh told reporters in New Delhi on his return from Sri Lanka.

"I see from what President (Chandrika) Kumaratunga shared with me that the process of moving towards political devolution could start in the near future," he added.

For the attainment of lasting peace it is necessary that a political process towards devolution be set in motion

India's foreign minister Jaswant Singh

President Kumaratunga has been discussing proposals with the main opposition United National Party and Tamil parties to reach a consensus before introducing a new constitution in parliament ahead of general elections due after August.

The new constitution proposes to devolve powers to regions, including one run by Tamils, in an effort to share power with minorities who accuse the majority ethnic Sinhalese of discrimination.

Humanitarian loan

Mr Singh said that India would be prepared to extend to Sri Lanka a credit facility, on terms to be mutually worked out between the two finance ministries, amounting to $100m.

He clarified it would only be for humanitarian purposes.

Mr Singh is the first Indian leader to visit Sri Lanka since New Delhi rejected Colombo's call last month for military assistance.

During his overnight visit, he met President Kumaratunga, opposition leader Ranil Wickremesinghe and foreign minister Lakshman Kadirgamar.

India last month ruled out any military assistance to Sri Lankan troops, who over the past few months, have suffered a string of heavy defeats at the hands of Tamil Tiger rebels.

Bitter experience

India is wary of direct military involvement because of its experience in the late 1980s, when it lost 1,200 soldiers who were part of a peace-keeping force in northern Sri Lanka.

The soldiers were hastily withdrawn in 1990 and Delhi has stayed on the sidelines since then.

But recently, India has backed a negotiated settlement to the conflict and has said it would mediate if invited to by both sides.

The 17-year long conflict has claimed more than 60,000 lives.