The Sri Lankan government announces its devolution proposals, devolving power at the district level. Analysts say that the proposals fall far short of minority ethnic Tamil demands.
Timeline of events under "Power sharing" issue
The Experts' Committee of the APRC produces 4 reports including a 'majority report' of 11 members and a 'minority report' of four members. The 'majority report' recommends inter alia maximum devolution of power, with the province as the unit of devolution.
Following the legal challenge by the JVP, the Supreme Court orders that implementation of certain clauses of the PTOMS agreement should be suspended until a final court determination, stopping short of declaring the agreement illegal.
Government signs the Post-Tsunami Operational Management Structure (PTOMS) agreement with LTTE for the rehabilitation and reconstruction of the tsunami-affected areas in the Northern and Eastern provinces. LTTE to share US$3 billion in aid. The JVP party pulls out of coalition in protest; vows to legally challenge the agreement.
The Government declares that it will not recommence peace talks on the basis of the ISGA proposals submitted by the LTTE.
In a television address, President Kumaratunga stresses that any discussion on an interim administration could only take place as part of talks on a final peace agreement.
The SLFP declares its "grave concerns" at the proposals released by the LTTE for the establishment of an ISGA which it considers lays the foundation for a separate, sovereign state.
The Government states that although the two sets of proposals for an interim administrative structure "differ in fundamental respects", it will seek to move forwards based on issues from both sets.
In response to LTTE demands, the Government proposes its 'Interim Administrative Council' to the LTTE.
The LTTE boycotts the Tokyo Donor Conference after the Government rejected its demand for the establishment of an interim administration.
The LTTE unilaterally calls off talks between it and the Sri Lanka government, declaring that unless its core demands are met, it will not participate in the donors' conference scheduled to be held in Tokyo in June.
The People’s Alliance and the JVP jointly campaign against any interim administration for North East, claiming it would be a first step towards a separate Tamil state.
The sixth round of peace talks between the government of Sri Lanka and the LTTE takes place at Hakone, Japan between 18-21 March 2003, amid growing security concerns. The parties agree to strengthen the mandate of the SLMM, discuss the commitment to developing a federal system and a roadmap on human rights.
LTTE submits its own set of proposals for what it terms an 'Interim Self Governing Authority' (ISGA) for the North East.
The third round of peace talks between the government of Sri Lanka and the LTTE is held in Oslo, Norway from 2 to 5 December. The government and Tamil Tigers reach agreement to share power within a federal structure. Several federal systems of government are considered by both parties.