Saturday, June 4 2005 10:14 Hrs (IST) - World Time -

New Delhi: Favouring early resumption of talks between Sri Lankan Government and Liberation Tigers of Tamil Eelam (LTTE), India yesterday supported a "comprehensive" and "negotiated" solution to the ethnic conflict as the two countries decided to conclude talks on a Comprehensive Economic Partnership Agreement (CEPA).

In a joint Statement issued after talks between Prime Minister Manmohan Singh and visiting President Chandrika Kumaratunga, the two sides expressed concern over ceasefire violations and illegal acquisition of air capability.

Kumaratunga conveyed to the Prime Minister her commitment to ensure full participation of all communities in the country to ensure the delivery of relief and reconstruction assistance to those affected by tsunami.

She briefed Singh on the current status of the peace process in Sri Lanka.

The Prime Minister conveyed India's "support for the process of seeking a comprehensive, negotiated settlement acceptable to all communities, and reflecting the pluralistic nature of Sri Lankan society, within the framework of a united and democratic Sri Lanka," the statement said.

The two leaders emphasised the need for the early resumption of negotiations in the peace process that will lead to a "durable political solution that maintains the unity and territorial integrity of Sri Lanka and guarantees the fundamental rights of all individuals while ensuring the safety and prosperity of the people."

Singh stated that India maintains an abiding interest in the security of Sri Lanka and remains committed to its sovereignty and territorial integrity, the statement said.

Taking stock of the "encouraging" progress on negotiations on a CEPA, the Prime Minister and the Sri Lankan President directed that the negotiations on it be concluded by the end of this year so as to give a new thrust to overall business activity as well as to encourage investments in several areas of mutual interest.

The two leaders noted that bilateral trade recorded a volume of $ 1.8 billion in 2004 with the imbalance between the two countries having narrowed significantly.

With regard to the Sethusamudram Canal Project, it was agreed that the exchange of views between the Indian and Sri Lankan technical experts should continue.

This would be with regard to environmental concerns and prospects of closer economic cooperation between the two countries in the Palk Bay area, it said.

Kumaratunga thanked the Prime Minister and the Government and the people of India for the generous assistance sent to her country immediately after the tsunami and for the further aid pledged, the statement said.

Singh conveyed India's commitment to assist Sri Lanka in recovery from tsunami tragedy. Indian assistance would consist of a grant of Rs 100 crore for relief and reconstruction projects, a moratorium on debt repayments for three years, as well as the factoring of post-tsunami reconstruction priorities into existing and proposed lines of credit.

Kumaratunga, who also met United Progressive Alliance (UPA) chairperson Sonia Gandhi and Petroleum Minister Mani Shankar Aiyar, conveyed to the Prime Minister her commitment to ensure the full participation in the country to ensure the delivery of relief and reconstruction assistance to those affected by tsunami.

In this context, she apprised the Prime Minister of her efforts to establish a Post-Tsunami Operational Management Structure (P-TOMS) for coordinating relief and reconstruction in areas affected by the tsunami, the statement said.

The Prime Minister expressed understanding of and support for these ongoing efforts.

Meanwhile, National Security Adviser (NSA) M K Narayanan said the tsunami relief operations should include not only LTTE but all Tamil groups.

Discussions between Singh and Kumaratunga reflected a large measure of convergence of views between the two nations on a number of international issues, including reform of the UN, the elimination of terrorism, South Asian Association for Regional Co-operation (SAARC) and regional cooperation, the statement said.

Kumaratunga said the Government and people of Sri Lanka looked forward to the visit of the Prime Minister there at an early date. Singh said he also was looking forward to the visit while pointing out that he attached highest importance to the furtherance and strengthening of India-Sri Lanka relations.

The two leaders noted that the upcoming visit of External Affairs Minister K Natwar Singh for the sixth meeting of the India-Sri Lanka Joint Commission on June 10 in Colombo would provide a further impetus to bilateral cooperation.