Canada has always supported a negotiated political settlement of the conflict in Sri Lanka. We welcome this agreement as a critical first step toward a lasting peace in Sri Lanka, and we commend both the Government of Sri Lanka and the LTTE for their efforts and determination in reaching it.

Mr. Graham recognized the crucial role played by the Government of Norway in this achievement. He expressed Canada's support for the continued involvement of Norwegian facilitators in the peace process and the presence of international observers from Nordic states to monitor the Implementation of the agreement.

The current peace process started under the leadership of President Chandrika
Kumaratunga and continued at an accelerated pace following the election of
Prime Minister, Ranil Wickremesinghe in December 2001.

"Both major political parties in Sri Lanka support the peace process, including the direct involvement of the LTTE. It is now important for the stakeholders to build upon this success and to address substantive political issues," said Mr. Graham. The Minister added that, if asked, Canada could assist in the peace process by providing technical expertise in military and political confidence building, or by offering technical assistance on the division of jurisdictions, and taxing powers within devolved and federal government systems.

Through the Canadian International Development Agency, Canada already has in place a carefully designed developmental assistance program for Sri Lanka, which aims to address the underlying causes of the conflict and support key. Sri Lankan institutions that can improve policies related to economic reforms, promote human rights and advance democratic values. Canada is currently involved in 14 such projects in Sri Lanka valued at $68.8 million.