US embassy cable - 03COLOMBO1111

UNCLAS SECTION 01 OF 03 COLOMBO 001111 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS, INR/NESA 
 
E.O. 12958:  N/A 
TAGS: PGOV, PTER, PINR, PHUM, PREF, CE, KWMM, LTTE - Peace Process 
SUBJECT:  Sri Lanka:  Background on federalism proposals 
 
Refs:  Colombo 1107, and previous 
 
1.  (U) Despite the serious problems that the peace 
process has faced of late (see Reftels), there is still 
much talk of federalist-related solutions to the 
conflict between the GSL and the Liberation Tigers of 
Tamil Eelam (LTTE).  At this point, the current 
positions of the government and the LTTE on federalism 
remain vague, with the two sides currently focused more 
on the related issue of how to form an interim 
administrative structure in the north/east.  That said, 
in terms of a longer range solution to the conflict, 
both sides have said they support the implementation of 
federalist arrangements in the north/east within a 
unified Sri Lanka. 
 
2.  (U) As background on the complex issues involved in 
any discussion of this subject in the context of Sri 
Lanka, Mission provides the attached briefer on previous 
federalism proposals that have been made in the course 
of the conflict.  These proposals stretch back to those 
made during the Thimpu talks in 1985 and include those 
contained in the 1987 Indo-Sri Lankan Accord, as well as 
more recent constitutional devolution proposals made by 
President Kumaratunga and her People's Alliance party. 
 
3.  (U) Mission's background piece on previous Sri 
Lankan federalism proposals follows: 
 
Begin text: 
 
SRI LANKAN FEDERALISM PROPOSALS: 
 
>> (A) 1985 - THIMPU:  In 1985, peace talks were held in 
Thimpu, the capital of Bhutan.  The Thimpu talks were 
the first set of peace talks held since the advent of 
the ethnic conflict in 1983.  India sponsored the talks. 
Four principles were placed before the GSL by six Tamil 
organizations, including the LTTE.  The Tamil groups 
wanted to amend the 1978 Sri Lanka Constitution and its 
"unitary state" provisions to encompass the following 
four points: 
 
Sri Lanka must: 
 
- Recognize Sri Lankan Tamils as a distinct entity; 
 
- Recognize an identified Tamil homeland and guarantee 
its territorial integrity; 
 
- Recognize the inalienable right of self-determination 
of the Tamil entity within this homeland; and, 
 
-Recognize the right to full citizenship and other 
fundamental democratic rights of all Tamils. 
 
The first three principles were rejected by the GSL on 
the grounds that they undermined the "unitary" character 
of the Sri Lankan state. 
 
>> (B) 1987 - INDO-SRI LANKAN ACCORD AND 13th AMENDMENT: 
The 13th Amendment of the Sri Lankan constitution gave 
effect to the devolution provisions of the Indo-Sri 
Lankan Accord signed in July 1987 by President J. R. 
Jayawardene and Indian Prime Minister Rajiv Gandhi. 
Once it signed the accord, the GSL pushed the 13th 
amendment through Parliament. 
 
The 13th Amendment sought to devolve power to newly 
instituted provincial councils throughout Sri Lanka, 
including a newly amalgamated northern and eastern 
provincial council.  It contained three lists detailing 
the following matters:  the areas of government devolved 
to the provinces (List I); the powers retained at the 
center (the Reserved List, or List II); and a Concurrent 
List (List III) of shared functions which were 
ultimately controlled by Parliament.  The 13th Amendment 
included the following key provisions: 
-  In addition to Sinhala, Tamil would also be an 
official language of Sri Lanka with English as a link 
language. 
 
-  The north and east would be merged into one province 
subject to a referendum. 
 
-  Provincial councils would be elected every five 
years. 
 
-  The president would appoint an executive-type 
governor for each province. 
 
-  Provincial high courts would be established. 
 
-  Financial provisions would be directed by Parliament. 
 
-  Decisions of the provincial councils could be 
superseded by regulations promulgated by the President 
under the Public Security Ordinance. 
 
Soon after the Indo-Sri Lankan accord was signed, the 
LTTE made clear that it would not cooperate with the 
Indian government.  The situation degenerated as fierce 
fighting erupted in the north and east between the LTTE 
and the Indian Peacekeeping Force (IPKF), and between 
the GSL and the radical JVP in the south.  In this 
situation, the proposed national referendum providing 
for a merged north and east never took place.  Councils 
in other provinces, however, were elected in November 
1988. 
 
>> (C) 1991 - PREMADASA PROPOSALS:  In August 1991, 
under President Premadasa's guidance, a joint 
parliamentary select committee was established to 
explore ways of achieving peace and political stability 
in Sri Lanka.  Mangala Moonesinghe, the current Sri 
Lankan high commissioner to India and then-Sri Lanka 
Freedom Party (SLFP) MP, was appointed to chair the 
committee. 
 
The interim report of the select committee was released 
in January 1993.  The report included the following main 
points: 
 
-  The establishment of two separate units of 
administration for the northern and eastern provinces; 
 
-  The adoption of a scheme of devolution on lines 
similar to those of the Indian constitution; 
 
-  The devolution of more powers in List III (Concurrent 
List of shared functions) of the 13th Amendment. 
 
The Tamil parties, including the LTTE, did not endorse 
the report, complaining that it did not devolve enough 
powers to a north/east unit.  Due to such criticism, the 
report was never put before Parliament as a bill. 
 
>> (D) 1994/95 - PA'S FIRST DEVOLUTION PROPOSAL:  The 
new People's Alliance (PA) government led by President 
Kumaratunga held peace talks with the LTTE from late 
1994 through early 1995.  The government used the talks 
to discuss confidence-building measures such as the 
lifting of embargoes, the rehabilitation of the north 
and east, including the restoration of electricity 
supplies.  The GSL said it was also keen to move forward 
on the framework of a political solution that provided 
that elections would be held in the north and east on 
whether the two areas should be merged.  The 
government's devolution proposals were never fleshed out 
fully, but it was leaning toward giving a north/east 
unit at least as many rights, if not more, than were to 
be given under the terms of the Indo-Sri Lankan Accord 
and the 13th amendment.  In the end, the talks failed, 
with the LTTE re-commencing the war in April 1995. 
>> (E) 1999/ 2000 - PA'S SECOND DEVOLUTION PROPOSAL: 
After several trial balloons, the PA went on to propose 
a new devolution package in 1999-2000. 
 
Under the devolution proposals, a new constitution was 
to replace the existing 1978 constitution.  The key 
features of the proposal were the deletion from the 1978 
Constitution of the following key points: 
 
-  (i) Article 2, which states that Sri Lanka is a 
unitary state; and, 
 
-  (ii) Article 76, which prohibits Parliament from 
abdicating its legislative powers and from setting up 
any authority with any legislative powers. 
 
Consequent to the deletion of the clause referred to at 
"i" above, the existing unitary state was to be replaced 
by a federation described as an "indissoluble union of 
regions." 
 
Also, consequent to the deletion of the clause referred 
to at "ii" above, Sri Lanka was to be divided into an 
unspecified number of regions (believed to be 8 or 9) to 
which Parliament would abdicate major legislative powers 
plus executive and judicial powers.  Two of these 
regions, the northern and eastern, were to be merged. 
 
Article 5 of the proposed constitution (in contrast to 
the 1978 Constitution) would include a Tamil-language 
translation of the national anthem. 
 
In addition, the government proposed that Sri Lanka 
would have two vice presidents from different 
communities with each such community being different 
from the community of which the president was a member. 
 
In August 2000, President Kumaratunga's People's 
Alliance party presented these proposals to Parliament 
in a bill.  Despite a favorable response from the 
minority parties, the new constitution was heavily 
criticized by the then-Opposition United National Party 
(UNP).  (Note:  The UNP won the December 2001 
parliamentary elections and is now in power.)  Never 
approved, the bill automatically lapsed when the 
Parliament was dissolved in August 2000, a few days 
prior to the expiry of its six-year term. 
 
End text. 
 
4.  (U) Minimize considered. 
 
CAMP