Colombo: Brushing aside reports that she has ruled out talks with LTTE (Liberation Tigers of Tamil Eelam) based on its self-rule plan, Sri Lankan President Chandrika Kumaratunga today (Aug 4, 2004) expressed willingness to discuss the controversial Tamil Tiger proposal.

Kumaratunga's office took the unusual step of denying the report published in the state-run 'Daily News' and said she was willing to discuss the Tiger plan.

"The President maintains that the Government of Sri Lanka is willing to discuss with the LTTE, its proposal for an interim administration, alongside the talks to reach a final solution acceptable to all communities," Kumaratunga's office said in a statement.

It said state media reports "implied" that the Government had "totally rejected" the LTTE's Interim Self-Governing Authority (ISGA) proposals which were first unveiled on October 31 last year."

Officials in her office said the report was not correct.

The President's office also said that Irrigation Minister Maithripala Sirisena, who was quoted in the state media report, had issued a separate statement denying remarks attributed to him.

The Daily News said President Kumaratunga ruled out resuming talks with the LTTE based on their ISGA proposal.

Last week, the Government indicated that although it was against the ISGA, it could be the basis for negotiations and the move was welcome by minority Tamil parties.

Diplomats and even officials involved in the peace process were stunned by today's state media report, which signalled a change in Government stance.