Photos: Security Forces Headquarters - Mullaithivu

A new school building constructed at the Roman Catholic College in Puthukkudiyiruppu was opened by suspected war criminal Major General Jagath Dias earlier this month.

Mr Dias, who is the commander of the Mullaithivu headquarters of the Sri Lankan army, was leading an army division during the armed conflict and is thought to be responsible for mass atrocities committed during the final phase.

The Reserve Bank of India (RBI) last week signed an agreement with the Central Bank of Sri Lanka which will enable the latter to withdraw up to $400mn in US Dollars or Euros.

"The Central Bank of Sri Lanka can make drawals of US Dollar or Euro in multiple tranches up to a maximum of USD 400 million or its equivalent," RBI said in a statement.

The agreement will be valid for three years and is expected to further economic co-operation between the two countries, the statement said, adding that it will also further financial stability in the region.

The National Freedom Front (NFF) accused Sri Lankan president Maithripala Sirisena of working against the mandate of the United People’s Freedom Alliance (UPFA) coalition and attempting to move the country towards federalism.

“We have always worked towards protecting the unity and sovereignty of the country,” said NFF spokesman Mohammed Muzammil in comments to the Sunday Leader. “President Maithripala Sirisena walked out of the UPFA and worked against it,” he added.

Sri Lanka’s Prime Minister Ranil Wickremesinghe pledged to deliver a political solution for the Tamil people, during his three-day visit to Jaffna.

Meeting with TNA officials on Saturday, the prime minister is said to have assured them that solutions to problems faced by the people in the region will be found.

However, addressing the Sri Lankan military at the Palali army camp, in the midst of a vast militarised high security zone, he said Sri Lanka should enhance its military force.

Sri Lanka already possesses one of the largest army's in the world, in relation to its population size, and the militarisation of the North-East is one of the key grievances of the Tamil people.

The Sri Lankan government has warned there is a real danger of the Liberation Tigers of Tamil Eelam regrouping and orchestrating another conflict.

Speaking to media earlier today, Deputy Foreign Minister Ajith Perera said the LTTE had millions of dollars in foreign assets that could be used to fund another guerrilla war at home.

“Their front organisations operate businesses abroad, they run petrol stations, supermarkets and have shipping companies,” the minister told reporters in Colombo.

“Even though they have been defeated on the ground, there is a real danger of their trying to regroup.”

Sri Lanka’s police claims the Tamil documentary film makers arrested in Colombo for making a “defamatory film” were working for Channel 4.

According to The Island, the police said the film was shot in Tamil in South India and some sections involving soldiers had been dubbed in Sinhala.

The Sri Lankan government has decided to resume all road development projects with China, according to a government official.

Highways, Higher Education and Investment Promotion Ministry Secretary Udaya Ranjith Seneviratne told Xinhua that the ministry had already made payments to the relevant Chinese contractors for the projects.

Some of the Chinese companies involved in the projects had earlier decided to suspend some of the work due to non-payment.