Thursday, September 1 2005 15:54 Hrs (IST) - World Time -

Colombo: Sri Lanka today (Sept 1, 2005) rejected an Liberation Tigers of Tamil Eelam (LTTE) proposal to hold crucial peace talks in the rebel-held territory of Kilinochchi, dealing a blow at efforts to revive the island's stalled peace process.

Government spokesman Nimal Siripala de Silva said the LTTE has offered to stage the meeting in Kilinochchi, but the Government turned it down.

Kilinochchi, around 330 kilometres north of here, is the main political capital of the territory held by the LTTE.

The decision comes a day after Tamil Tiger rebels rejected a Government offer to hold ceasefire review talks in Sri Lanka because of security concerns.

An LTTE spokesman, meanwhile, denied media reports that they were insisting that the talks should be held abroad.

"We proposed Oslo, but the government said they can't go abroad. Then we said Kilinochchi," LTTE spokesman Daya Master said.

"Now we are awaiting a response from the Government to our proposal," he said.

He said the Tigers, however, will not travel to any other part of Sri Lanka because of security considerations.

De Silva said the government offered to have the talks at Oman Thai, along a narrow strip of no-man's land at the de facto frontier post, but that too had been turned down by the Tigers.

He said steps to end the stalemate will be decided after President Chandrika Kumaratunga returns from China.