Colombo, Nov 10: The bitter power struggle between Sri Lanka's President and her Prime Minister threatens 4.5 billion dollars pledged in foreign aid to the impoverished country, analysts and diplomats say. International donors promised the unprecedented financial support to rebuild a country battered by three decades of ethnic violence, but only on condition that warring parties moved forward with their peace bid.


However, the entire peace process was in jeopardy after President Chandrika Kumaratunga last Tuesday sacked the ministers of defence, interior and information and suspended Parliament for two weeks.


The move triggered an outpouring of concern for the Norwegian-backed and internationally acclaimed peace effort between the Colombo government and the rebel Tamil Tigers.

"This political crisis is going to reinforce the donor scepticism," said Jayadeva Uyangoda, head of the department of political science at the University of Colombo. "First it was the Tigers, now it is the government."

He was referring to donor concern when the Liberation Tigers of Tamil Eelam (LTTE) suspended talks in April after opening a dialogue in September last year and completing six rounds of negotiations.


Donors pledged over 4.5 billion dollars in aid at a conference organised by Japan in June but insisted there must be progress in the peace process if the foreign cash was to be delivered.

Bureau Report