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Thursday, 6 September, 2001, 15:50 GMT 16:50 UK
Sri Lanka pact defended
JVP's Tilvin Silva (left) exchanges the document with the PA's DM Jayaratne
The JVP has struck a hard bargain
By Frances Harrison in Colombo

Sri Lanka's minority government says a pact with former Marxist revolutionaries will not stand in the way of privatisation and attempts to resolve the country's civil war.

Defending their new alliance with the People's Liberation Front, or JVP, government ministers said the one year arrangement would restore much needed stability to the country.


We will sort out don't worry... we will sort out the matter

Cabinet Minister Nimal Siripala de Silva
The JVP has 10 crucial seats in parliament but nobody expects the deal to last long.

The agreement signed by both parties stipulates that the government must move to abolish the executive presidency within six months and then hold fresh elections within a year, under a caretaker government.

The cabinet has to be halved in size within a week, and the remaining ministers must agree voluntarily to give up half their salaries.

The government also has to ban the import of luxury vehicles for ministers and officials, put a ceiling on foreign travel, and their fuel allowance, not to mention stopping all construction work on the president's new house.

Tough conditions

It is clear the JVP have struck a hard bargain and the government has been trying to put a brave face on it, though Minister of Post and Telecommunications Nimal Siripala de Silva lost his cool at one point.

"We will sort out, don't worry... we will sort out the matter," Mr de Silva said.

Sri Lanka civil war
Attempts to end the civil war may be hurt
"It will be a problem for us lot, not you lot, some of you will be very happy to see that there are problems and friction with the JVP. But we will sort them out," he added.

On the economy, the agreement says plans to privatise public or social property must be put on hold for one year and no financial agreements deemed detrimental to the interests of the country should be signed.

The government says this will not adversely affect investors, but the business community has not reacted well.

On Sri Lanka's most pressing problem, the civil war, the JVP has insisted there should be no proposals for devolution of power or any other proposals that might lead to controversy.

That has been widely interpreted as putting an end to current attempts to find a negotiated settlement to the war, though the government says it has in no way dampened their commitment to negotiations.


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See also:

05 Sep 01 | South Asia
Sri Lanka coalition gets reprieve
03 Sep 01 | South Asia
Analysis: Sworn enemy turned ally
20 Jun 01 | South Asia
Sri Lanka coalition in crisis
06 Jul 01 | Country profiles
Country profile: Sri Lanka
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