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Summary

Sri Lanka, an island nation in the Indian Ocean, is a constitutional democracy with a relatively high level of development. Political, social, and economic development has, however, been seriously constrained by ethnic conflict between the majority Sinhalese and minority Tamil ethnic groups. Since 1983, a separatist war costing at least 70,000 lives has been waged against government forces by the Liberation Tigers of Tamil Eelam (LTTE), a rebel group that sought to establish a separate state or internal self-rule in the Tamil-dominated areas of the North and East. The United States designated the LTTE as a Foreign Terrorist Organization in 1997. Open fighting in this conflict came to a close with the defeat of LTTE field forces and the combat death of their leader Velupillai Prabhakaran in May 2009. The government now faces the challenge of consolidating peace with the Tamil community now that LTTE forces have been defeated. Sri Lanka also suffered a huge natural disaster in December 2004. A massive tidal wave killed up to 35,000 citizens in Sri Lankas worst-ever natural disaster. The current state of affairs in Sri Lanka presents the United States and the international community with several key challenges. Chief among these is how to help the government of Sri Lanka to win the peace now that it has won the war against LTTE forces in the field. Many observers feel that the manner in which the post conflict period is addressed will have a great impact on the degree to which the grievances of the Tamil minority can be put to rest. A policy that would address these grievances is perceived by many to be more likely to avert a resurgence of conflict than one that ignores or exacerbates them. Another key challenge is how to recast foreign aid to assist those in need and those displaced by the civil war. Political rivalry between the Sri Lankan Freedom Party (SLFP) and the United National Party (UNP) has long hindered peace efforts. The United Peoples Freedom Alliance, a coalition of the SLFP and the staunch Marxist Peoples Liberation Front (JVP), won a slim majority in 2004 parliamentary elections and defeated the UNP to replace its then-Prime Minister Ranil Wickremesinghe with perceived hardliner Mahinda Rajapaksa, who himself went on to win the presidency in a narrow 2005 electoral victory. Rajapaksa stabilized his position by enticing the defection of several UNP and Muslim party parliamentarians in early 2007, but his government has faced constant pressure from the JVP and from hard-line Buddhist-nationalist parties that are part of the ruling coalition. Meanwhile, the LTTE suffered a major schism in 2004 when a top commander in the East known as Colonel Karuna broke away with up to 6,000 cadres and began collaborating with government forces. The ethnic violence of mid-2006 was followed by a major government military offensive in 2007 and Colombos formal withdrawal from the ceasefire agreement in January 2008, which culminated in the military defeat of the LTTE in May 2009. U.S. policy supports peaceful efforts to reform Sri Lankas democratic political system in a way that provides for full political participation of all communities; it does not endorse the establishment of another independent state on the island. Since Sri Lankan independence in 1948, the United States has provided more than $3.6 billion in assistance funds, about two-thirds of this in the form of food aid. Direct non-food aid for FY2007 is estimated at $9.4 million. Serious human rights problems in Sri Lanka are blamed on all major parties to the ethnic conflict and have led to some limited U.S. and international aid sanctions. This report will be updated periodically.

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