The second follow - up meeting of the Tokyo Donor Conference on Reconstruction and Development of Sri Lanka, was held on Friday 23 January 2004, at the Colombo Plaza Hotel.

The meeting was chaired by Special Representative of the Japanese Government, Yasushi Akashi and assisted by Norway, the United States and the European Union. The Government of Sri Lanka was represented by Hon. Prof. G.L. Peiris, Hon. Milinda Moragoda and Hon. Rauf Hakim. The meeting was attended by representatives of key bilateral donors and international organisations based in Colombo.

Mr. Akashi, in his opening address stated that the Follow-up Meeting was based on the provisions of the Tokyo Declaration, which required periodic review of the peace process by the international community.

Hon. Prof. G.L.Peiris, speaking on behalf of the Sri Lankan delegation, highlighted the need to distinguish between, the process and issues relating to the peace initiative. He indicated that the process, which is wide ranging and multi-tracked remains resilient and strong, and urged the donors to remain committed to the process.

He emphasized the need to ensure continuity of the peace process, if it is to advance and progress positively. He pointed out that continuity depended on building upon the foundations that have been successfully achieved. He noted that the Oslo Declaration was achieved by the parties agreeing to fundamental principles. The government on its part was committed to substantial devolution of power as the basis for a political settlement, while the LTTE accepted a federal form of government within a United Sri Lanka as the preferred approach to a settlement.

Referring to the political developments on 4 November 2003, Hon. Prof. Peiris, stated that the Prime Minister has clearly indicated his inability to ensure implementation of Articles 1 & 3 of the Ceasefire Agreement without authority over the subjects of Defence and Interior. He further stated that there are discussions to find an acceptable mechanism that would adequately empower the Prime Minister to fulfill his obligations under the Ceasefire Agreement.

Hon. Prof. Peiris, referred to four key elements that are fundamental for progress in the peace process namely; the acceptance of the Ceasefire Agreement, the commitment to substantial devolution of power, an interim administration with a relationship to the final settlement, and the acceptance of the current Facilitator. He pointed out that political forces with divergent views on these elements would not achieve real progress.

Hon. Prof. Peiris highlighted the need to ensure an accurate information flow and clarifications on the current political developments among the parties concerned. It was also pointed out the need to explore modalities, such as the existing project-structures, to enable the flow of funds for reconstruction and rehabilitation activity in the North and East. Furthermore, the immediate need to expedite development activity in the entire country was expressed, to ensure ownership of the peace dividend by everybody.

The donor community indicated the increasing demand for donor assistance from other recipients. The donors called on the parties to resolve the outstanding issues with a view to resuming peace talks at the earliest.

The meeting concluded with the donor community expressing its resolve to support the peace efforts in Sri Lanka, through the continued assistance for reconstruction and development activity.