Colombo, Dec 11: Sri Lankan government today admitted for the first time that talks between President Chandrika Kumaratunga and premier Ranil Wickremesinghe have deadlocked over control of the Defence Ministry, a day after a fourth round of parleys ended in a failure. "Despite a fourth round of talks between Kumaratunga and Wickremesinghe yesterday, the two were unable to resolve their differences," government spokesman G L Peiris told reporters here. He said the talks were useful in deciding on a course of action after the negotiations resumed with Tamil Tiger rebels but the immediate problem of taking the peace process forward was not addressed. "Up to now a satisfactory formula has not emerged."

"They have not agreed on the threshold issue of who takes the responsibility for the peace process," Peiris said, adding that without control over the military the premier cannot pursue his peace bid.

Wickremesinghe had insisted on being given total control over the military to pursue his peace process with Tamil Tiger rebels, but a senior presidential aide said on Tuesday that Kumaratunga would not compromise on the issue.


Peiris said investors have placed their plans on hold due to the ongoing power struggle between the two leaders.

"Investors are not abandoning us, but they are adopting a wait and see policy," Peiris said. Bureau Report