EU member states should be working more actively to ensure that [international] development projects in Sri Lanka, especially in the north and east, do not help institutionalise an unjust peace or fuel new grievances and violent conflict, particularly with regard to the use and ownership of land.

Foreign direct investment in Sri Lanka dropped in 2010, despite the end of the war in May 2009, Reuters reported last month.

Highlights:

Despite approval of 268 projects worth $2.5 billion, only about a third were started, the Board of Investment's (BOI) said.

FDI to September was $310m, compared to $350m in the same period in 2009.

Disappearances and extrajudicial killings of Tamils are once again on the rise in Sri Lanka. In Jaffna a simmering terror campaign by government-backed paramilitaries has escalated with several people going missing and the bodies of others, bearing horrific wounds, being dumped in public spaces.

The victims include business people and prominent members of the community. And it is no coincidence this is happening amidst international efforts, led now by India, to restore normalcy in the Tamil areas and kickstart the economy there.

When people are abducted and never seen again – ‘disappeared’ – or their bodies are later found dumped, and when they are gunned down in public or in front of their families, these acts are often described as ‘senseless’. Senseless because nothing these people might have done - or are suspected to have done - is seen to justify such horrific ends.

But there is a purpose to disappearances and extra-judicial killings: terror. These acts are not just about the individual, but the rest of society. They constitute a specific form of violence aiming to define the relationship between the state and the community concerned, between fear and submission.

Of the 135 individuals recently accepted into the Sri Lanka Administrative Service (SLAS), described as the apex of the government’s bureaucracy, all but one (a Muslim) were Sinhalese. Unsurprisingy - there weren’t any Tamils amongst the 257 people short listed.

See the full report by LakbimaNews here.

Sri Lanka’s rhetoric on the urgent need for development in the Northeast belies its systematic efforts to disrupt the Tamil people’s recovery and subvert international assistance towards further consolidation of Sinhala dominance over them. The state’s cynical calls for the international community and the Diaspora to contribute to development of the Northeast must be viewed against its actual practices and past record.

"There is a definite trend to reduce aid agencies to [mere] service providers where the government says where, what, when and how. Therefore, it might be more difficult for NGOs to operate in the future according to humanitarian principles or their mandate"

"The main question is whether the government will take care of the Tamil population, as much as it does with Sinhalese population in the south."

Sri Lanka observed two minutes silence Sunday for the victims of the devastating Boxing Day tsunami of 2004.

The World Bank will phase out grants and interest-free loans to Sri Lanka over the next three years, and will instead provide loans at near commercial interest rates for Colombo’s development projects.

Dr. Okonjo Iweala, the Managing Director of the World Bank made the announcement during a visit to Colombo this month, the LBO reported.