In this context, I very much regret the absence of the LTTE delegation, as this conference is an important opportunity for the parties to exchange views and confirm their commitment towards the peace process. Sweden would like to urge the LTTE to return to the negotiation table and together with the Government of Sri Lanka pursue the goal agreed upon in Oslo for a political settlement based on a federal solution within a united Sri Lanka. In this context, let me express our sincere admiration for Norway for its relentless efforts to promote peace in Sri Lanka.

It is essential to continue the dialogue even when the resolution of difficult issues appears to be impossible. It is our sincere hope that the withdrawal of the LTTE from the peace talks is only, as said by the LTTE in the letter of April 21st, a suspension “for the time being”, indicating that the LTTE will come back to the negotiation table shortly.

As a step towards increasing security on the ground as well as a means to support the efforts to uphold the cease-fire agreement and to move ahead with the peace process, Sweden, along with other Nordic countries, has recently taken a decision to increase its support to the Sri Lanka Monitoring Mission. The number of Swedish monitors will increase by 50%.

In December last year, the Swedish Government approved a new country strategy for development co-operation with Sri Lanka. An agreement on development co-operation between Sweden and the Government of Sri Lanka for the period 2003 - 2005 was signed in April this year.

The focus of Swedish development co-operation is in line with priorities set by the Sri Lankan Government. Conflict prevention will be a cornerstone for the years to come. One dimension of this is to strive for increased geographical balance. The benefits of Swedish development assistance must reach all parts of the country, i.e. people in the North and East as well as in the South. Other important aspects of our co-operation are the strengthening of institutions that promote gender equality as well as the respect and protection of human rights.

Swedish development co-operation must be effectively co-ordinated with other international assistance to avoid duplication and overlap. By harmonising donor support we can help ensure that it does not impose an excessive burden on the administrative structure at national and local level in Sri Lanka.

A number of bilateral donor countries have sent a letter to the Government and the LTTE which emphasises that our pledges at this conference reflect the link between development assistance and progress in negotiation and implementation of a political settlement.

There is indeed a strong link between peace and development and between the peace process and Swedish development assistance, including our contribution to the North and the East. As stated in Oslo, Sweden is willing to contribute to the NERF and stands ready to do so as soon as the parties resume peace talks. A Swedish contribution to the NERF represents not only our desire to see humanitarian and rehabilitation assistance reach communities in the North and the East, but also our commitment to work through jointly owned and governed LTTE/Government structures capable of setting priorities and deciding on development assistance to these parts of the country. Sweden stresses the need for effective implementation on the ground, since, as has been evident in recent weeks, there is great urgency in making substantial progress in implementation.

Sweden will support the realisation on the ground of the Needs Assessment carried out by the Sri Lankan Government, the LTTE and the UN through support to the NERF and other channels. Sweden will also support the development in the North and the East through extension to these parts of the country of already ongoing programmes in the South, e.g.support to the Chambers of Commerce and support to the Human Rights Commission.

During the three year period 2003-2005 Sweden will keep available at least 35 million dollar as an untied grant. In addition to this, Sweden intends to supply humanitarian assistance, concessionary credits, soft loans and support through non-governmental organisations. Sweden is prepared to channel 3,9 million dollar to the NERF, substantially more than what was originally pledged in Oslo. In response to the Flood disaster in Southern Sri Lanka, Sweden has contributed 230 000 dollar through UNICEF and the Red Cross in immediate relief. For medium and long term rehabilitation, a further 1,3 million dollar will be provided.

It is our sincere hope that the Government and the LTTE will show good will by resuming peace talks in the true interest of all people of Sri Lanka.

Thank you.