If Sri Lankans on both sides continue to approach talks constructively and show a willingness to compromise, we believe peace can return

US embassy statement

A statement issued by the US embassy in Colombo welcomed rebel chief Velupillai Prabhakaran's support for the ongoing peace negotiations and said violence could not achieve the Tigers' stated objectives.

The statement followed a rare press conference by Mr Prabhakaran on Wednesday where he declared his commitment to the peace process but said he was not ready to give up arms immediately.

He also said he would only consider renouncing violence once a permanent solution had been reached to Sri Lanka's ethnic conflict.

The comments came amid mounting optimism that an end may be in sight to almost two decades of civil war that has claimed at least 65,000 lives.

Ban on LTTE

The Tiger leader insisted on Wednesday that the government must lift its four-year ban on his organisation before planned face-to-face talks in May.

Prabhakaran: Ban should be lifted

The Sri Lankan Government later said it was prepared to accept the rebels' key demand but the timing of the move had yet to be decided.

Observers say that if the outlaw tag is lifted at home, the LTTE is expected to campaign to have its "terrorist" label removed abroad.

The United States designated LTTE a foreign terrorist organisation in 1997 and moved to freeze its assets last year.

The group also remains banned in neighbouring India since 1991 when former Prime Minister and leader of the main opposition Congress party, Rajiv Gandhi, was blown by a suspected Tiger suicide bomber.

Separate state

Key to the talks is whether or not the Tigers will settle for greater autonomy within Sri Lanka.

Rebels are not ready to give up arms

The rebel leader had said conditions were still not right for the Tamil Tigers to abandon its policy of independent statehood.

The Prime Minister, Ranil Wickramasinghe, interpreted this as meaning the Tigers might accept autonomy "as an acceptable alternative to a separate state".

The US says it also supports maintaining the island nation's territorial integrity.

"A political solution to the conflict which maintains Sri Lanka's territorial integrity would be welcomed by the international community, and we urge all parties to continue to work toward that goal", the US embassy statement said.