By Frances Harrison BBC Sri Lanka correspondent

This is the second round of face-to-face peace talks between the Tamil Tiger rebels and the Sri Lankan Government.

But it is the first time the Tamil Tigers are being represented by senior figures from within rebel territory rather than exiled leaders alone.

Minister of Constitutional Affairs and government delegate, GL Peiris, says there are three phases to the peace talks.

We don't know what the government is up to with regard to the possibility of an election or co-habitation or whatever it may be

Anton Balasingham

He says the talks are currently at the first stage, which Mr Peiris says is a consolidation of the permanent cease-fire agreement signed in February this year.

The second is setting up provisional administrative arrangements and the third will be a discussion of a final political settlement.

Details

According to the rebel side, the agenda this time includes finalising the details of the joint task force for development work in the conflict areas.

This was a task force agreed upon at the first round of talks in mid-September - but the terms of reference, functions and the composition of the task force still have to be worked out.

The rebels also hope for progress on setting up the joint committee they agreed at the last round, which is supposed to help displaced people return to their homes in high security areas maintained by the Sri Lankan army.

According to Anton Balsingham, 100,000 people are unable to return to their homes because of these high security zones.

The rebels also say they will discuss the current political situation in the south with the government delegation. <

There has been concern about Sri Lanka's cohabitation government, which has seen increasing strains between the prime minister who has spearheaded this peace initiative, and his rival the president.

The worry is that the failure to share power in Colombo might derail attempts to resolve the civil war.

Building the framework

From the government point of view this round of talks will lay the groundwork for the mini pledging conference they have arranged in Oslo on 25 November.

"This will be the framework to inspire donor confidence," says Mr Peiris of the joint task force on development.

But it is likely the government will also discuss the current crisis within the Sri Lanka Muslim Congress, its ally in parliament.

Their demand is for a separate Muslim administrative unit in the east of Sri Lanka to safeguard the rights of Sri Lanka's third largest ethnic group and they want a firm commitment along these lines now.

Mr Balasingham has said it is pre-emptive for Muslim leaders to demand any kind of commitment now, though he added the Tamil Tigers would seriously take up the issue of the political rights and the security of Muslims at a later stage when discussions moved on to a permanent solution.

Muslim concerns

In Colombo, there is concern that growing Muslim uneasiness at the prospect of living under a rebel-dominated administration in the east of Sri Lanka might undermine the broader issue of reconciling Tamil and Sinhala differences.

Muslims have suffered at the hands of the Tamil Tigers in the past and now complain that they feel very insecure.

The inclusion this time of a key rebel commander from the east will be important for discussing ways of reassuring the Muslim minority there.

A spokesman for President Chandrika Kumaratunga, welcomed the second round of talks, but reiterated the view that it was time to start discussing the core issues underpinning the conflict.

Harim Peiris, said steps had commenced on rehabilitation and reconstruction but what had happened so far was the maximum possible under a cease fire.