Colombo, May 27: Norway's bid to revive Sri Lanka's peace bid suffered a setback today as tiger rebels put off responding to a government offer of financial powers aimed at ending the impasse, diplomats said. Oslo's special envoy Erik Solheim was due to travel to the rebel-held northern town of Kilinochchi today with the latest government offer, but the trip was suddenly cancelled.
Diplomatic sources said the move followed indications that the Liberation Tigers of Tamil Eelam (LTTE) would not provide an immediate response to the offer of financial authority to begin reconstruction in embattled areas.
The government yesterday finalised new proposals granting greater powers to the Tigers for reconstruction and rehabilitation projects.
"The government proposals are a counter to the LTTE demand for an interim administration," a diplomatic source said. "What is being discussed is to grant more powers to the LTTE to speed up reconstruction work."
The government had hoped the proposals would address rebel concerns of slow progress on the ground and ensure the Tigers rejoined peace talks, which they pulled out of on April 21.
Solheim spent a second day in talks yesterday with Prime Minister Ranil Wickremesinghe and the government's chief peace negotiator G L Peiris, the sources said.
Diplomats said Solheim was now expected to meet the LTTE's London-based chief negotiator, Anton Balasingham, on his return to Oslo.
Bureau Report