The third day of talks concluded this evening after deliberations on political issues relating to power sharing. The delegations shared information of a conceptual nature on fiscal devolution. This provided the parties with a better understanding of the facets involved in revenue and disbursement concepts. In the ensuing discussion, the delegations were of the view that it was essential to map out the trajectory of the process, in order to have a clearer vision of the steps ahead.

The LTTE delegation indicated that a Political Affairs Committee has been established recently to research and study federal structures. The Committee will visit the Scandinavian countries by end March on study tours to familiarise themselves on federal models. Already, experts from the Canadian based Forum for Federation, and Mr. Ian Martin, international Advisor on human rights, have lectured the Committee.

The parties reviewed the last six sessions of talks and took stock of the process. The delegations were of the view that rehabilitation efforts needed to be intensified, and parallel political issues required greater attention.

The delegations were informed by the World Bank that procedural matters relating to the North-East Reconstruction Fund (NERF) have been finalised and the Fund has become operational. With this development, donors are now in a position to make contributions to the Fund, which will, in turn, facilitate funding of projects already approved by the Sub Committee on Immediate Humanitarian and Rehabilitation Needs in the North and East (SIHRN).