Colombo: The long-awaited power-sharing plan proposed by Tamil Tigers was welcomed by politicians and diplomats in Sri Lanka, who said it had raised hopes of ending the prolonged ethnic bloodshed by leaving margin for negotiations.

Ambassadors of European Union (EU) member-states welcomed the Liberation Tigers of Tamil Eelam (LTTE)'s announcement as an "important step forward in the peace process".

"The EU Heads of Mission emphasise the linkage between assistance by the international donor community and substantial parallel progress in the peace process," the EU said in a statement.

The Government's Chief Peace Negotiator G L Peiris admitted that there were differences between Colombo's offer of devolution and the proposals made by the Tigers, but they could start negotiations.

"While the disparities between the position of the parties are evident, the Government is convinced that the way forward lies through direct discussions of the issues arising from both sets of proposals," Peiris said yesterday (Nov 1).

The rebel LTTE yesterday announced their first-ever blue-print for peace under which they seek a majority in a proposed Interim Self-Governing Authority (ISGA) for the island's embattled Northeast. PTI