Situation approaching outright civil war after deadliest month since 2002 ceasefire. Attacks on military killed at least 80; LTTE supporters claimed over 40 Tamils killed by security forces or gunmen since early December. Norwegian peace envoy Erik Solheim arrived 23 January in last-ditch effort to avert full-scale conflict: LTTE and government agreed to talks in Switzerland early February but killing of senior LTTE officer and abduction of 5 Tamil aid workers end January dampened optimism. Norway-led Monitoring Mission temporarily suspended in Trincomalee after grenade attack amidst escalation of violence.

Surge in violence in north and east raised fears of return to full-scale civil war: at least 46 killed, including 26 soldiers in 3 separate Jaffna landmine blasts, 13 sailors in ambush in northwest, and pro-rebel MP at Christmas mass in Batticaloa. Military delayed retaliation against LTTE assault, hoping condemnation by foreign donors will pressure Tigers into returning to ceasefire. In policy shift, newly elected President Rajapakse invited Norway to continue observer role. Government formally invited Tigers to restart peace talks and agreed to LTTE demand talks be held overseas; Japan offered to host. Over 900 detained by police in 31 December security sweep of capital in search for suicide bombers.

PM Rajapakse, known for hard-line approach to Tamil Tiger rebels (LTTE), won 17 November presidential election with 50.3% of vote. Low turnout in Tamil areas due to internal LTTE divisions and reported intimidation of Tamils helped Rajapakse defeat Wickramasinghe, who pledged to uphold current peace agreement. 3 killed and 17 wounded in bomb and grenade attacks in east, but election-related violence generally lower than expected. LTTE leader Prabhakaran issued ultimatum to new government for political settlement within year. Rajapakse declared intention to re-negotiate peace deal and joint mechanism for aid distribution. New president named new cabinet 23 November; kept defence and finance portfolios, gave new Wickremanayake disaster relief.

Norwegian peace envoy said government and Tamil Tigers (LTTE) engaged in “subversive war” threatening ceasefire. Security forces on alert for 17 November presidential polls. Government re-extended state of emergency 18 October that gives security forces powers to arrest suspects without warrants. LTTE said expanded powers could derail proposed peace talks. LTTE reportedly killed soldier and police officer 13/14 October. PM Mahinda Rajapakse launched presidential campaign; rejected LTTE demand for Tamil autonomy.

Increased international attention on perilous ceasefire failed to halt violence in north and east. UNSG envoy Lakhdar Brahimi visited in attempt to keep peace process on track. LTTE rejected offer by Norwegian peace-brokers to hold talks at international airport. Government extended state of emergency for month. LTTE claimed 3 rebels killed in east by soldiers: army blamed LTTE faction. Military claimed LTTE shot dead Hindu priest in north 14 September; 2 ethnic Tamils, 1 Sinhalese killed in east 1 October. Presidential poll set for 17 November. Government/LTTE aid-sharing deal remained suspended by Supreme Court.

In major setback to peace process, Foreign Minister Lakshman Kadirgamar, outspoken critic of Tamil Tiger rebels (LTTE), assassinated 12 August. Government declared state of emergency and launched massive manhunt for assassin. LTTE denied government accusations of involvement; agreed to hold first high-level talks with government since 2003 on implementation of stalled 2002 ceasefire agreement; sides yet to decide venue. Supreme Court declared second and final term of President Kumaratunga ends December, setting stage for new elections: PM Anura Bandaranaike to be candidate for ruling party - will face United National Party leader Ranil Wickramasinghe.

Ceasefire between LTTE and government seriously at risk after escalating factional violence and mutual accusations. Tensions slightly reduced after government proposed new measures to ensure safety of LTTE cadres 25 July. LTTE rejected government offer to renegotiate Ceasefire Agreement. At least 6 security forces, 4 LTTE rebels, 1 civilian killed in separate incidents. Government blamed factional violence while LTTE blamed military supporting breakaway faction led by Karuna. LTTE removed all political officers from government areas - issued threat to resume military action and use own armed escorts in government areas - directly violating ceasefire. Joint mechanism for distribution of tsunami aid suspended by Supreme Court 15 July after action brought by nationalist People’s Liberation Front. 100,000 joined main opposition United National Party in Colombo demonstrations 12 July calling for new elections.

Deal on joint aid distribution mechanism finally signed 6 months after tsunami: post-tsunami operation management structure (P-TOMS) - under which committees comprising rebels and government can recommend, prioritise and monitor projects funded by $3 billion in pledged foreign aid - signed 23 June. Deal sparked hopes of improved cooperation between Liberation Tigers of Tamil Eelam (LTTE) and government but cemented political split between President Kumaratunga’s ruling People’s Alliance and coalition partner, leftist People’s Liberation Front, leaving Kumaratunga’s government with only 81 seats in 225-seat legislature. Chief of LTTE’s political wing welcomed deal, saying if implementation successful will “open the way for the peace process”. Tensions remained high however as 3 soldiers killed by suspected LTTE in eastern district of Batticaloa 30 June.

Agreement on joint mechanism for aid distribution remained elusive despite President Kumaratunga’s pledge to prioritise deal. LTTE blamed Kumaratunga for delays. Government coalition partner, leftist People’s Liberation Front, maintained threat to pull out of government if joint mechanism goes ahead. LTTE reportedly killed senior army intelligence officer 31 May while factional violence continued.

Norwegian peace envoy Erik Solheim continued efforts to bring sides towards deal on joint mechanism for aid distribution amid growing opposition from groups linked to government coalition partner Janatha Vimukthi Perumuna (JVP). LTTE insist mechanism in place before they consider wider talks for solution to conflict. Pro-LTTE Journalist Dharmaretnam Sivaram abducted and killed Colombo 29 April. LTTE factional violence continued with 5 rebels, belonging to breakaway group led by Karuna, killed 15 April.