National Joint Committee (NJC) representing these organisations has appointed a committee of five jurists headed by former Supreme Court Judge S.W. Walpita to examine and report on the feasibility of introducing a federal system as agreed by the government and the LTTE at the ongoing peace talks.

NJC General Secretary Dr. Piayasena Dissanayake said the committee comprising responsible, representative and reputable persons was appointed on the request of Most Ven. Rambukwelle Sri Vipassi Thera, the Mahanayake of the Malwatte Chapter of the Siam Nikaya.

The committee also comprises former Attorney General and Acting Chief Justice R.S. Wanasundara, former Supreme Court Judge Lusian de Alwis, former Solicitor General President’s Counsel Douglas Premaratne and lawyer M.Z. Akbar. Dr. Dissanayake functions as the secretary to the committee.

The committee will inquire into the background to the demand for a federal system of government, study on whether Sri Lanka already has a federal system of government and availability of any viable alternative to a federal system.

The committee will also investigate the political, social and economic implications arising from an application of federal principles on the sovereignty and territorial integrity of Sri Lanka.

Dr. Dissanayake said they were expected to present their report to the Mahanayakes in three months and requested the public to participate in the process by making representations and providing material as soon as possible. The correspondence should be addressed to NJC, 3rd Floor, YMBA Building, Borella, Colombo 8.

Earlier, NJC set up the Sinhala Commission headed by Justice Walpita to inquire into the grievances and discriminations suffered by Sinhala people. The commission has already released several volumes in this regard. The move came following the Peoples’ Allaince government introduced the constitutional reforms claiming that the Tamils had being discriminated by Sinhala people. Published: Tue Mar 11 12:30:20 EST 2003

The gun battle off the island's northeastern coast on Monday sank a rebel vessel that was suspected of smuggling arms and also left four navy sailors injured. It was the most serious incident between the warring parties since they signed a Norwegian-brokered cease-fire agreement a year ago.

The clash infuriated the rebels, who accused the navy of provocation and warned the government that the ``grave incident ... will have far reaching implications on the peace process.''

However, they say it is no reason to go back to war.

``This is a very serious cease-fire violation. But, we are not prepared to revert back to war because peace is what all the people want,'' rebel spokesman Daya Master quoted their chief peace negotiator Anton Balasingham as saying Tuesday in the rebel-held town Kilinochchi.

A sixth round of peace talks are scheduled March 18-21 in Japan. The peace process aims to reach a permanent agreement to end one of Asia's longest-running civil wars. Nearly 65,000 people have died in the 19-year conflict.

Tilak Marapone, the Sri Lankan defense minister, said safeguards were needed to prevent a repeat of the clash but it would not ``derail the peace process.''

``The commitment by both sides to remain in the process is unlikely to be set off course,'' said Paikiasothy Saravanamuttu, a top political analyst. He said both sides should reiterate their commitment to peace so that public confidence is not diminished.

Before the cease-fire, the Liberation Tigers of Tamileelam, had been fighting since 1983 for a separate state, claiming discrimination against minority Tamils by majority Sinhalese. Now they say they would settle for autonomy.

The talks, strongly supported by the United States, Britain and Japan, are the best chance the island has had in ending the conflict.

The parties were expected to discuss revenue sharing within a federal system at talks next week.

A top Norwegian official involved in the peace process, speaking on condition of anonymity, said international attention and the opportunity offered by the process to raise money to rebuild the country will compel the parties to stay on track. He said people have had a taste of peace and don't want to revert to war.

An international donor conference to garner millions of dollars is expected in June in Japan.

Chief of the European truce monitors, Tryggve Tellefsen, will meet Tiger leaders to discuss Monday's clash, said the monitors' deputy, Hagrup Haukland.

``The most important thing is to sit down with the parties and see how we can move forward. What's done is done,'' he said.

Hours after the clash, the rebels conveyed their ``deep displeasure,'' over the incident in a letter to Marapone, the defense minister.

Marapone told The Associated Press the Tigers' vessel opened fire on the patrolling navy ship, which ``confirms our suspicions that the LTT (Tamil Tiger) vessel was carrying arms.''

The Tigers deny allegations of weapon smuggling. Under the cease-fire agreement, the navy has retained its right to patrol Sri Lankan waters to prevent the Tigers from bringing in arms.

Marapone said he would respond to the Tigers in a letter clarifying facts.

However, jitters caused shares to drop by 1.8 percent at the Colombo Stock Exchange on Tuesday.

Monday's incident came a month after another confrontation at sea in which cease-fire monitors found weapons on a rebel vessel. The Tigers on the ship blew themselves up after the monitors left.

The incident took place hours before the start of the last round of peace talks in Berlin, but they resumed after swift intervention by Norwegian peace brokers. Published: Tue Mar 11 10:32:59 EST 2003