ow is perhaps the most critical time in the history of Sri Lanka. After two decades of debilitating civil warfare that cost the lives of some 65,000 people, the country has a real chance for a lasting peace. A ceasefire agreement has held since February this year and the latest round of peace talks in Bangkok this November went smoothly – everyone is keeping their fingers crossed.

A lasting peace will offer the chance to create a more affluent society

The ethnic conflict between the Tamil Tiger forces (LTTE), based in the northern part of the island, and the government of the south, has affected the Sri Lankan economy and its people for years, and has been a major brake on development.
On July 24 last year, the country was rocked by the LTTE’s attack on its main airport, just north of the capital Colombo, which killed innocent civilians and destroyed both commercial airliners and military aircraft. In 2001, Sri Lanka posted its first ever negative gross domestic product growth rate of -1.3 percent.

Then an election and a change in government in December of that year strengthened moves towards peace. Now, says Tyronne Fernando, Minister of Foreign Affairs, it is the new administration’s responsibility to make the peace accord stick. “The people are war weary,” he says. “They want to get on with uniting the country and creating jobs for themselves, getting into the mainstream of political life.”

There is no doubt that the new government has popular support, and the backing is from both sides – the Sinhalese in the south, as well as the Tamils in the north. In September, a peace rally brought Colombo to a standstill. The country wants to bury the past and go forward.

The peace is starting to bear fruit. Foreign investors are beginning to return to the country. So, too are the international tourists who provided Sri Lanka with much of its hard currency. The U.S. government – a keen supporter of the peace process – has relaxed its travel advice. The ports and airports are back to operating at normal levels.

There is a new sense of responsibility in government. This includes a commitment to crack down on the mismanagement and bad governance that plagued previous regimes. While the peace talks take center stage, there is also talk of reconstruction to heal old wounds. Those in power know the importance of creating opportunities for all people in securing a longer term peace.

	Ranil Wickremesinghe Prime Minister of Sri Lanka
“My government has received considerable encouragement from Washington”

Mr. Fernando – who will be a candidate for the UN secretary-general’s post in 2006 – says the U.S. can continue to play a meaningful role in future development, in terms of trade and investment. Sri Lankan business delegations recently visited the U.S. to promote opportunities; senior Sri Lankan politicians, including the Prime Minister Ranil Wickremesinghe, have been welcomed at the White House. “We need your investment, we need your tourists and your trade,” he says. “Nothing more – we are not asking for handouts.”

During the visit the Prime Minister asserted the importance of Sri lanka’s good relations with America. “With a rational approach to policy and the support we are receiving from major countries such as the U.S., I believe we will move ahead,” he says. “My government has received considerable encouragement from Washington and our relations with America are as good as they could be.”