The Jathika Hela Urumaya, one of the founder and main constituents of the UNP-lead UNFGG, said it will not allow the TNA’s demand for federalism to become reality, dismissing the notion as “just one of their dreams”.

General Secretary of the party, Champika Ranawaka, said the UNFGG had not made any proposals which could threaten Sri lanka’s sovereignty.

“The President and the Prime Minister and even Mahinda Rajapaksa have accepted the unitary state of this country. The TNA has been calling for a Federal solution since 1949. It is just one of their dreams,” the JHU chief said at an election rally in Kolonnawa.

A pre-election poll carried out by the Centre for Policy Alternatives showed the majority of Sinhalese back Mahinda Rajapaksa to become prime minister of Sri Lanka in the upcoming general election, whilst the overwhelming majority of Tamils rejected him.

According to the survey, which sampled 2,000 people across the island, 36% of respondents backed former president Mahinda Rajapaksa for the prime ministerial post compared to 31.9% for current Prime Minister Ranil Wickremesinghe.

Meanwhile only 1.8% of Tamils surveyed backed Mahinda Rajapaksa, with 62.3% backing Mr Wickremesinghe.

Mr Rajapaksa recently announced that there would be no room for separatism on the island, as he spoke out against devolution. A whole host of Sinhala political parties,  including Mr Wickremesinghe’s UNP, have also announced they will not allow any devolution of power.

Last month both leaders visited the Temple of the Tooth, to get blessings from Buddhist monks ahead of the general elections in a month’s time.

Sri Lanka's Board of Investment (BoI) said it will sign agreements with four foreign investors in deals worth nearly $4bn.

BoI Chairman Upul Jayasuriya said the major deals, worth nearly double of last year's FDI of $1.6bn, will include a $30mn investment from German car giants Volkswagen, a ship breaking facility at Hambantota, a monorail project and a crane factory at Colombo Port.

Speaking on the Volkswagen deal to be signed, Mr Jayasuriya said,

“It’s not huge but it’s just the footprint. We have asked them to set it up and given a time period for them to export,”

Sri Lanka’s Ministry Of Defence has teamed up with Sri Lanka’s tourism board to lead a motor expedition tour of Jaffna reports defence.lk.

The expeditions are to be lead by military members of Sri Lanka’s Commando Regiment across the North-East.

India's Minister of State for Road Transport and Highways said Sri Lanka has not yet approved a project to link the island's Tamil North-East with Tamil Nadu in the south of India.

Pon Radhakrishnan said on Monday the Indian government had asked the Asian Development Bank to carry out feasibility studies into the project, but that Sri Lanka is yet "to give the nod", the Economic Times reported.

At the beginning of July Union Minister Nitin Gadkari said the project to build a road, leading across a bridge and through a tunnel, was already in its planning stages and the Asian Development Bank had pledged Rs 220bn ($3.5bn) towards it.