The Norwegian Prime Minister, Kajell Magne Bondevik, has said he is optimistic that the Sri Lankan government and the rebel Tamil Tigers can be brought to the negotiating table for peace talks by the middle of this year.
Mr Bondevik was speaking to the BBC during an official visit to Madrid.
Norway has committed itself as an objective mediator in the conflict, which has lasted 19 years and cost an estimated 60,000 lives.
A Norwegian delegation led by Deputy Foreign Minister Vidar Helgesen is due in Colombo on Thursday for talks with Sri Lankan leaders to try to arrange a permanent truce with the rebels.
Mr Helgesen also recently held talks in London with the Tigers' chief negotiator, Anton Balasingham.
Encouraging signals
Sri Lanka has a new government in place, and Mr Bondevik is convinced it is committed to bringing peace to the country.
He says he is encouraged by the fact that a unilateral ceasefire announced by the Tamil Tigers and reciprocated by the government is holding.
One of the first measures the government implemented on taking office in December was to lift the economic embargo on areas of Sri Lanka which are controlled by the rebel group.
Mr Bondevik expects official peace talks to be held during the months leading up to the summer of 2002, with Norwegian negotiators acting as objective mediators as both sides have agreed.
By maintaining regular contact with both government and Tamil Tiger leaders, Norway's role has been crucial in increasing trust between the two parties.
Permanent truce
The Norwegian Prime Minister says the only realistic approach to any lasting peace agreement would be for the Tamil Tigers to give up their long-standing claim to the creation of a separate Tamil homeland.
This, he said, they appeared to be willing to do.
In return he said there was a great deal of work to be done on the government's side to achieve equal conditions for Tamils in their daily lives.
Mr Bondevik said the Prime Minister, Ranil Wickramasinghe and the President, Chandrika Kumaratunga, had a historic opportunity at this moment to make peace in Sri Lanka.
As a small nation with valuable experience in other conflicts, including the Middle East, Guatemala and Sudan, he said Norway had an advantage over any country with great or superpower status.