A new round of aid negotiations will get underway later this year or early next year between Sri Lanka and the European Union (EU), officials said. This follows the culmination of the 2007-2013 programme of grants (free money) to Sri Lanka worth Rs 58.2 billion (Euro 388 million). The next programme will run from 2013 to 2020.

"We don't expect to see a decrease in aid. (On the other hand) I think it is unlikely that there will be an increase but that's because of constraints in our budget (crisis)," Bernard Savage, Head of Delegation of the EU in Sri Lanka and the Maldives, adding "a new country strategy will also be prepared".

Garments exports to the EU have fallen by 10-15 per cent this year in the months to May with a further drop envisaged in June, as the impact of the loss of GSP + concessions in mid-2010 slowly takes root. Exporters are urging the government to apply for a fresh round of concessions.

Asked about this, Mr Savage said, "we have had no request from the government for a new facility."

But he pointed out: "To use the words of the Minister of External Affairs (G.L. Peiris) this is a closed chapter (in our relationship). The fact is that GSP+ was withdrawn and there has been no further discussion on that issue and Sri Lanka has not re-applied. We need to move on."

He said the normal GSP proagramme of concessions will continue as before. Rohan Abeykoon, Chairman of the Sri Lanka Apparel Exporters Association, said the loss of GSP + has not led to job losses but created an impact amongst small and medium scale exporters.

"It would be the loss of a critical mass where companies endemic to Sri Lanka and locally will lose while those with multinational connections will shift elsewhere and still survive," he said, adding: "This is not a healthy trend".

Easing exports to the EU coupled with lower consumer demand owing to the economic crisis there is a double-edged sword the industry is facing. He said in such a situation consumers may opt for the mid-or-low-end of the market range of products in which low-cost countries like Bangladesh and Cambodia, which both have GSP+, can further benefit. India is also on the verge of getting GSP +, a factor Sri Lanka needs to consider seriously, he said.

Mr Savage said the entire EU budget (for local and international use) has come under severe political pressure and in a sign of austerity, national governments are cutting their own costs.

He said the Mahinda Chinthana and other government priorities will be considered as the basis for the new 2013-2020 programme and development goals. There'll be less post-conflict work in the areas affected by the conflict in the new plan of assistance. On specifics about the turbulent relations between the two sides, Mr Savage said that, with regard to trade there are no specific irritants. "I like to stress that in the normal run of affairs � whether we have political differences or not � doesn�t affect trade. GSP + was a specific case but if you look at the broad spectrum of trade relations, that (GSP+) was not affected by short-term considerations," he added.

He said Sri Lanka's GSP + application didn�t fulfill conditions on the Inter Convention on Civil and Political rights. "I must further stress that the conditions in the GSP + is not about European rules but international rules subscribed by the countries themselves. It's not our rules. It's simply that for countries to benefit from GSP+ they should apply laws they have already subscribed for."

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The Jathika Hela Urumaya (JHU), a coalition party of Sri Lanka' ruling United People's Freedom Alliance (UPFA), said it will take measures to mobilize the public to urge the government to abolish the 13th Amendment to the Constitution. JHU parliamentarian Ven. Athuraliye Ratana Thero said the public must be mobilized to urge the government to change its stance on the 13th Amendment. The Thero's call to abolish the 13th Amendment came in response to the statement by Cabinet Spokesperson Minister Anura Priyadarshana Yapa that the government would not abolish the 13th Amendment. At the cabinet press briefing Thursday Minister Yapa said the government has no intention whatsoever to postpone the Northern Provincial Cunicl polls, repeal the 13th Amendment or introduce amendments to the Constitution to remove police and land powers to the provinces.

An armed squad that came in a white van on Tuesday abducted a 68-year-old activist, Thangathurai Veluppillai, a supporter of the Tamil National Alliance (TNA) in Ampaa'rai district. The victim was blindfolded while he was at Kalmunai public market and was taken away by the squad that tortured him to obtain the names of the TNA activists in Ampaa'rai district. The abduction comes a few days after the intelligence of the occupying SL military 'investigated' him following a meeting against the land grab by the SL military in his division. After 3 days of interrogations in Batticaloa, Mr Thangathurai was taken back to Kalmunai and released there, the sources further said. Informed civil sources in Ampaa'rai told TamilNet that the abducted victim, who hails from Malvaththai in Chamman-thu'rai division of Ampaarai district, was taken to Batticaloa for interrogation.

The Q branch of the Tamil Nadu police, with the assistance of the Ernakulam North police, arrested 21 Sri Lankans who were about to sail to Australia in a fishing boat from Kochi. The operation was carried out after information about the same was passed on by the Intelligence Bureau. According to officials, seven men, six women and eight children were nabbed from the New Cochin Residency, a hotel situated near the Ernakulam North Railway station, in the early hours of Thursday. The Sri Lankans came from Chennai by train and according to a statement issued by them, an agent named Subash took '1 lakh from each of them on Tuesday evening. 'These people are from four refugee camps located near Chennai. They were planning to sail to Australia in a fishing vessel. The agent escaped during the raid.

A Buddhist monk set himself on fire this morning outside the Temple of the Sacred Tooth Relic, Kandy in protest over the slaughter of cattle, police said. Sources said the monk poured petrol over his body and then lit himself. He was rushed to the Kandy hospital with severe injuries and later transferred to General Hospital, Colombo, the police added.

Dominican Republic authorities have arrested four men from Sri Lanka accused of smuggling at least 60 migrants from India and the Middle East into the U.S. and Canada using fake passports. Officials with the National Investigations Department say the alleged leader of the group is a Canadian citizen identified as 42-year-old Karunhanithy Nallathamby. Director Fidel Calcagno said late Wednesday that Nallathamby was in charge of obtaining passports in Canada that would later be altered and given to migrants once they reached the Dominican Republic. He said the majority of migrants had criminal backgrounds and would stay in Nallathamby's house for up to two months before traveling to the U.S. or Canada.

Immigration Minister Brendan O'Connor has granted lawyers access to two Tamil asylum seekers who feared they would be removed to Sri Lanka. The asylum seekers - who cannot be named - emailed refugee lawyer David Manne from Christmas Island on Wednesday seeking his help to apply for refugee protection. The email came after 31 Tamil asylum seekers were flown from Christmas Island to Sri Lanka after they were determined to be not genuine refugees. Daniel Webb, from the Human Rights Law Centre, said that such people were typically interviewed without legal advice.

A massive pre-dawn fire has gutted the inbound cargo warehouse in Sri Lanka's Colombo Port, port officials said. The early morning fire had broken out in the CFS-1 warehouse at JCT terminal inside the Port of Colombo, the Chairman of the Sri Lanka Ports Authority, Dr. Priyath Bandu Wickrama told the media. The Colombo Fire Brigade with the assistance of Navy and Army has managed to douse the fire. There were no injuries reported due to the fire. The Port Authority Chairman has said that the authority will immediately take necessary measures to evaluate the cargo that was destroyed in the fire. Project Minister of Ports and Highways Rohitha Abeygunawardena said that an immediate inquiry has been launched to ascertain the cause of the fire.

The National Investigations Department (DNI) in the Dominican Republic arrested members of a people trafficking network with possible links to international terrorist cells, who used Dominican Republic as a bridge from Cuba, France, Spain, Sri Lanka and Haiti, Dominican today.com reported. The website said that DNI chief operating officer Fidel Paulino identified the Sri Lankan- Canadian Karunanithy Nallathamby as the group's leader, arrested in Sosua, Puerto Plata, while Kanthaany Siresh or Sriram Kannan, and Ganesh Mahenderan, or David Kristen and Kohulan Selvarasa, were detained in a house where they had hidden during two months. The DNI said Nallathamby had stolen original passports from a passport office in Canada to alter them and sell to Indian nationals who entered Dominican territory along the border with Haiti.

The Sri Lanka government yesterday expressed concern over the signing of a Memorandum of Understanding (MoU) between the US embassy in Colombo and the Trincomalee Urban Council to jointly establish a public information and activity centre known as the American Corner, without the knowledge or the authorisation of the Sri Lanka External Affairs Ministry. Government sources said that foreign missions based in Colombo should obtain prior approval or inform to the External Affairs Ministry of Sri Lanka whenever they need to engage with local authorities - which is the international norm. Currently there are two American Corners - in Kandy and Jaffna. The signatories to the MoU for establishing and American Corner were Christopher Teal, Director, Press, Cultural and Educational Affairs of the US embassy in Colombo and the chairman of the Trincomalee Urban Council, K. Selvarajah.

Defence Secretary Gotabhaya Rajapaksa yesterday warned the government of dire consequences in case the Tamil National Alliance (TNA) won the first northern provincial council election. The Defence Secretary was responding to a statement attributed to Petroleum Minister Anura Priyadarshana Yapa, at Wednesday's post-cabinet media briefing, that the election would be held in accordance with the 13th Amendment to the Constitution. Minister Yapa ruled out the possibility of diluting the 13th Amendment before the election. Asked whether he would publicly campaign against the decision, the Gajaba Regiment veteran said: "As the Secretary, Ministry of Defence, my responsibility is to warn the government of the grave repercussions of empowering a hostile provincial administration with land and police powers. Police powers in the hands of those still pursuing a separatist agenda can pose a severe threat to national security."

The Sri Lankan government has commenced a campaign to promote the country ahead of the Commonwealth Heads of Government Meeting (CHOGM) in Colombo this November. Secretary of the External Affairs Ministry Karunatilaka Amunugama said the government will also attend a meeting to be held at the Commonwealth Secretariat in London this week. He has explained that Media Ministry Secretary Charitha Herath would be heading the publicity team in Sri Lanka while Sri Lankan High Commission missions overseas are also carrying out separate campaigns ahead of the summit. External Affairs Minister G.L. Peiris had also briefed his Ministry staff last week on the preparations for the summit in November.

China Development Bank Corporation will lend $580 million to Sri Lanka to help implement key infrastructure projects, a government document released on Wednesday showed. The loan will bring CDB's total lending to Sri Lanka to more than US$1.4 billion. China's increasing influence in the island nation has stoked concerns in neighboring India. According to the document, $300 million of the loan will be spent on developing roads and $200 million on water supply projects, with the rest going to the national business school. It said CDB had already extended $652 million for road development projects and $214 million for an irrigation project. The loan announcement comes ahead of a four-day official visit to China by Sri Lankan President Mahinda Rajapaksa.

Speaker Chamal Rajapaksa has requested all MPs to be present in Parliament when Thailand's Prime Minister Yingluck Shinawatra addresses the House on May 31. The request from the Speaker was read to the House by Deputy Speaker Chandima Weerakkody yesterday. He said that PM Shinawatra would address the House at 2. 45 pm on May 31, on a special request by Speaker Chamal Rajapaksa. Security in and around Parliament had been increased and the MPs' rooms and lockers would be inspected by the members of the security forces on May 30 and 31 as a part of those security arrangements. On that day the public gallery would be open only for invitees.

Leader of the National Freedom Front - Minister Wimal Weerawansa, who was recently hospitalized, has been discharged last night (22). He was admitted to the Colombo Nawaloka Hospital four days ago. Doctors had said that the flu that the minister was suffering from had led to pneumonia. Doctors have advised him to rest for a few days, reports say.

A further 31 Sri Lankan irregular maritime arrivals are being returned to Colombo after failing to meet Australia's international obligations, Australia's Immigration and Citizenship Minister Brendan O'Connor said. The group departed Christmas Island on Wednesday to be flown back to the Sri Lankan capital. Their return takes the number of Sri Lankans sent home to 1161 - 950 of them involuntarily - since August last year. Mr O'Connor said returning the group to Sri Lankans sends a powerful message. 'The Gillard Government is making it crystal clear that those who pay smugglers are throwing their money away and risking their lives in the process,' Mr O'Connor said.

The Sri Lankan government on Wednesday said that it will use a key Commonwealth summit in November to showcase the post-war developments in the country. The Commonwealth Heads of Government Meeting (CHOGM) will be held in Sri Lanka in November this year, and heads of state from almost all the Commonwealth countries, including Britain's Prince Charles, will attend the summit. The Sri Lankan Ministry of External Affairs said that Sri Lanka will be able to show the developments following a three-decade separatist terrorist conflict and the vast economic opportunities available in the country.

High Commissioner of India Ashok K. Kantha (left) and Minister of Industry & Commerce of Sri Lanka Rishad Bathiudeen at the launch of the Handbook on Indo-Lanka FTA in Colombo. Outgoing Indian High Commissioner Ashok K. Kantha says Sri Lanka needed to enter into a comprehensive economic partnership agreement (CEPA) between the two countries, more so than India did, because economic growth prospects are linked with that of Asia and the ASEAN grouping. "The rest of the world does not wait for us. India has signed Comprehensive Economic Partnership Agreements (CEPAs) with many other countries. I myself was involved in launching CEPA talks with Japan, Korea and Malaysia and all three came to fruition. Therefore I feel little uncomfortable that there are so many completely baseless apprehensions about a more comprehensive framework in forming business relations with other countries.

The Indian Housing Project was launched on the ground in the Eastern Province today jointly by Hon. Basil Rajapaksa, Minister of Economic Development and H.E. Ashok K. Kantha, High Commissioner of India. In events organized at three different locations in Batticaloa district, certificates were handed over to some of the selected beneficiaries. Hon. Basheer Segudawood, Minister of Productivity Promotion, Hon. M.L.A.M. Hizbullah, Deputy Minister of Economic Development, Hon. V. Muralitharan, Deputy Minister of Resettlement, Hon. Rear Admiral (Retd.) Mohan Wijewickrama, Governor of Eastern Province, Hon. Najeeb Abdul Majeed, Chief Minister of Eastern Province and Hon.

UNP and Opposition Leader Ranil Wickremesinghe said, in Parliament yesterday, that the government was getting ready to arrest a number of UNP politicians who participated in a workshop coordinated by the Friedrich Neumann Foundation. The Opposition Leader said that the issue would be taken to international fora and the MPs who attended the workshop had been accused of trying to overthrow the government. "Yes, we are trying to topple this government but that is through democratic means, through electoral process, by the ballot. That is our sole right as the Opposition. Now, the government has got the CID to harass our MPs accusing them of trying to topple the government through undemocratic means."

A controversial Buddhist organization in Sri Lanka, the Bodu Bala Sena (BBS), says that the government had not made sufficient effort to reconnect with the Tamil people following the end of the war. BBS General Secretary Ven. Galagodaaththe Gnanasara Thero said although the government built roads and developed the infrastructure in the North, it would not win the hearts of the people. Explaining that the war had prevented the Sinhala people from connecting with the Tamil people, the Thero said the BBS wants to build a rapport with the people in the North. According to the Thero, there are over 400 Christian non-governmental organizations (NGOs) in the country, which did "nothing for these people".