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Oslo meeting important step in peace process - PM

Colombo, Monday (AFP) - Prime Minister Ranil Wickremesinghe, who is set to visit Norway to drum up foreign support for his peace bid, remained cautious on a timetable for a final deal with the LTTE.

Wickremesinghe, in an interview with AFP Monday, declined to say whether a formal peace agreement with the LTTE could be signed as early as next year.

"The LTTE is also looking for the terms and conditions of a settlement," he said. "We will have to talk and see."

Wickremesinghe would not set a deadline for reaching a political agreement with the Tigers.

Wickremesinghe, however, added that the November 25 meeting of foreign donors in Norway would be an important step in the peace process.

Wickremesinghe said he was expecting more than cash from the Oslo meeting which he said would allow the international community to send a strong political signal of support.

"Look at the personalities involved," Wickremesinghe said, mentioning US Deputy Secretary of State Richard Armitage and British International Development Secretary Clare Short who have confirmed their participation.

Wickremesinghe said the Oslo meeting would set the stage for a bigger aid pledging conference that could be held in Tokyo next spring.

The prime minister said the country was recovering from an unprecedented recession last year when the GDP growth rate hit a negative 1.4 percent, but that it would be at least another two years for the economy to stabilise.

"We have turned around the economy to have 3.5 percent growth this year... Things will be better in 2003 and start to stabilise by 2004."

Sri Lanka has lowered its defence spending since a truce went into effect in February with the Tigers.

Wickremesinghe downplayed the rivalry with the President, saying the tensions with her did not erupt on a daily basis. "Not even every other day."

However, he admitted that he had differences with President Chandrika Bandaranaike Kumaratunga on defence matters because "it is tied up with the peace process".

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