The British High Commission in Colombo said the government is studying the recent EU judgement which annulled measures taken against the Liberation Tigers of Tamil Eelam.

According to The Sunday Leader, a high commission spokesperson said that the EU ruling does not affect the ban on the LTTE in the UK, under the Terrorism Act.

“This is separate from the EU provisions. But it is also important to note that the EU Court judgment is a legal decision on procedural grounds and not a political decision by the EU member states. The judgment did not involve any substantive assessment of the classification of the LTTE as a terrorist group,

"We, like others, are studying the judgment and appropriate next steps; and for the time being, the freeze on LTTE funds imposed by the EU has been maintained for another three months. In the UK, it is illegal to supply funds to the LTTE under our Terrorism Act 2000,” " the spokesperson said.

The leader of the MDMK, Vaiko, criticised the BJP led Indian government's policy on Sri Lanka, stating that it was affecting the Tamils adversely.

"Though the previous UPA discreetly helped Sri Lanka against Tamils, it later backtracked but the BJP government is openly aiding Colombo," Vaiko was quoted as saying by PTI.

Highlighting comments made by the BJP leader, Subramaniam Swamy, Vaiko condemned Swamy's call for Sri Lankan president Mahinda Rajapaksa to be awarded India's highest civilian honour - Bharat Ratna.

The Sri Lankan government has asked Chinda for a "massive" loan from China to fund another project in Hambantota, reports the Sunday Times.

According to the paper, government officials were seeking a loan for an extension on the Southern Expressway, and China's EXIM bank has agreed.

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Sri Lanka hired its eighth American public relations firm this year to reach out to US media, officials and policy makers.

Levick, an organisation subcontracted to the Liberty International Group, has been hired to speak on behalf of the Sri Lankan central bank.

Sri Lankan President Mahinda Rajapaksa, in his last budget presentation before the presidential election in January, granted several concessions and handouts to the people of Sri Lanka.

Rajapaksa pledged that families of military personnel and police officers would receive Rs. 1000 per a month, as well as a guaranteed a 17.6% rise in rice prices, and pledged to provide farmers with free rice for the next season.

Journalists will be given interest-free car loans and school teachers and university lecturers will receive a rise in allowances, his budget further proposed.

The president also promised free health check-ups for all citizens and a pension scheme for garment sector employees.