The Australian High Commissioner to Sri Lanka has been criticised after handing out certificates to alleged Tamil rebels who went through two years of military led rehabilitation, The Age reports.

Kathy Klugman took part in a much publicised ceremony, celebrating, what was termed as, the reintegration of 1800 former rebels, along with US ambassador Patricia Butenis, British High Commissioner John Rankin and Indian High Commissioner Ashok Kantha.

Talks scheduled for Monday, between the TNA (Tamil National Alliance) and the Sri Lankan government, have once again been postponed, as government officials were reportedly too busy with local elections due to take place on the 8th October.

The current round of talks resumed on the 16th September after several months of stalling.

The Sri Lankan Air Force has purchased two Xian MA 60 passenger aircraft from China, to be used as part of its growing domestic arm, Helitours.

Reportedly purchased from the Chinese under a loan scheme, the aircraft will be used to provide domestic passenger flights across the island.

Writing in Himal, the BBC correspondent, Charles Haviland shared his thoughts on his journey to the North-East.

"Clusters of soldiers went by on tractors and, with extraordinary regularity, there were neat, manicured army camps and signs showing how northern Sri Lanka is divided up: Welcome to 66 Division, Welcome to 561 Brigade. For how much longer will the north remain essentially one huge garrison? For a lot longer, it seems."

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Over 100 Sinhala Buddhist monks and supporters attacked a Japanese Buddhist Temple in Kollupitiya on Sunday, forcing worshippers to barricade themselves in for fear of assault.

The Sinhala monks, followers of the Theravada sect of Buddhism, reportedly launched the attack to protect Sri Lanka from the Mahayana sect of Buddhism - the form practised at the Japanese temple.

One worshipper who hid inside the temple as the Sinhala monks stormed the temple, said,

“The Buddhist monks forcibly entered the premises shouting out that we stop our prayer session.

The monks said we should only have Theravada Buddhism in Sri Lanka and not Mahayana,”

Worshippers were trapped inside for over four hours before the police were able to free them and escort them to safety.

In addition to the aggression exhibited by the protesters, the rescue operation was further hindered by five bhikkus who sat in front of the closed door and refused to permit the police to enter.

A confidential report commissioned by the Commonwealth has called on the group to make essential reforms and uphold human rights in the organisation or they risk becoming irrelevant.

The report, obtained by Reuters, was compiled by a 10-member Eminent Persons Group and is due to be presented at the Commonwealth Heads of Government Meeting in Perth later this month.

The 204-page report said, "As it is currently perceived, the Commonwealth is in danger of losing its relevance".

With the 2011 Ontario general elections set to take place this week, the Canadian Tamil community looks set to hold considerable sway on the outcome, as candidates are in the height of campaigning for their votes.

The elections, set to take place on Thursday the 6th of October, have given the Tamil community the opportunity to make their voice heard and it seems that the candidates have sat up and listened.

See report from Digital Journal here.

Further to our analysis last week on Sri Lanka’s trade, debt and currency quandary, see this report by LBO:

The Sri Lankan Highways Ministry is borrowing $500 from local banks, ostensibly to finance road reconstruction.

5 people have been arrested for printing 20,400 copies of the JVP newspaper ‘Lanka’, the Daily Mirror reported.

The report comes as the split in the JVP deepened, with both factions planning to hold separate conventions to expel their rivals.

‘Lanka’ is currently run by the dissident JVP, with the main faction claiming ownership of the newspaper.

Despite an ever-increasing call for an international, independent investigation into the allegations of war crimes and crimes against humanity, Rajapaksa asserted that the world should commend Sri Lanka on its 'rehabilitation programme' for alleged LTTE cadres and the release of 1800 Tamil men and women from detention.

All the men and women said to be released on Friday had been detained as suspected LTTE cadres, and ordered to under go a 'rehabilitation' programme.