Analysis
By Priyath Liyanage Editor, BBC Sinhala Service

The first round of talks between the Sri Lankan Government and Tamil Tiger rebels has been a huge political success for both sides.

The two parties and Norwegian diplomats mediating in the discussions ended the closing press conference sounding optimistic.

Neither side showed any dramatic shift on any of their positions

They left the talks venue in Thailand after fixing dates for future meetings.

The media event which followed the talks was a friendly affair.

Government chief negotiator GL Peiris and Anton Balasingham from the Tamil Tigers painted a future of constructive dialogue and reconciliation in the coming months.

The first round of talks dealt with many issues, but skirted the more difficult items on the political agenda.

While agreeing to continue the existing ceasefire agreement, the two sides talked about:

• the return of refugees to government-designated high-security zones
• the rebuilding of the North and East which were devastated by years of war
• landmine clearance.

Aid sought

Neither side showed any dramatic shift on any of their positions.

Sri Lankans are desperate for peace

Mr Balasingham confirmed the fight for a Tamil homeland. He said the Tigers were ready to settle the conflict within a united Sri Lanka.

This has always been the position of the Tigers whenever they enter into a dialogue with the government.

The Tamil Tigers would only ask for a separate Tamil state if they had to win it militarily.

The only real change in their stance since the talks began has been about including Tamil-speaking Muslims in a future Tamil homeland.

The main decision at the talks was to work jointly to raise funds to return the North and the East to normality.

The parties have pledged to work together to secure aid from the international community.

President's cautious welcome

Thorny issues relating to the future political structure of peace were avoided in the first round of talks.

The ceasefire has held for seven months and there is huge optimism about peace

It seems discussions focused on matters on which both parties can agree amicably.

The make-up of the interim administration and decommissioning the rebels have been the main issues for the opposition Sinhala nationalists in Sri Lanka.

The only indication given on this subject was by the Tamil Tigers, who said they are looking to legitimise their present administration in the north of the country.

This statement is likely to upset the opposition.

But even President Chandrika Kumaratunga has welcomed, albeit cautiously, the results of the first round.

Optimism

The challenges for the peace process lie ahead.

When political matters are discussed, disagreements are likely between negotiators and on the streets of Sri Lanka.

With a constitutional battle between the prime minister and the president apparently worsening by the week, it will be difficult for the government to deliver on things on which it agrees with the Tigers, without the support of the opposition.

Any changes in the constitution need a two-thirds majority in parliament. The government is now working on adjustments to the constitution aimed at reducing Mrs Kumaratunga's powers.

But despite all the problems and difficulties, the ceasefire has held for seven months.

And there is huge optimism about peace in Sri Lanka.

It would be difficult now to return to conflict after people have enjoyed the longest period of peace since the war began 20 years ago.