With increasing fears of war and conflict in other parts of the world it is particularly encouraging to be here in Oslo discussing an ongoing peace process. I am grateful for the opportunity to be here today, to recognise, with my colleagues, the enormous strides that have been made by both sides since the ceasefire was announced at the beginning of 2002. And to applaud the Norwegian Government for the constructive way they have helped facilitate and nurture the process.

It goes without saying that the British Government fully supports the peace process.
Much has been achieved, but it is early days. The wounds from twenty years of fighting, and longer years of mutual disillusion, mistrust and fear, will take a long time to heal. As we know from our own experience in Northern Ireland, there will be setbacks that challenge the will of both sides to stay engaged. But the prize for Sri Lanka and its people is could not be greater.

The journey will be long. Sri Lanka must sustain and nurture the constructive process that has begun so well. Must continue dialogue when resolution of difficult issues appears impossible. Must persevere when it might be easier to give in to forces antagonistic to the peace process.

The international community can assist. We can help build confidence in the peace process by helping ensure that tangible benefits are delivered to people across the whole of Sri Lanka, not only for immediate emergency and humanitarian needs, but for long term development. These benefits must, as all parties here acknowledge, accrue to people in the South, as well as those in the North and East

For donors this cannot be business as usual. The peace process is dynamic and demands rapid and flexible responses from donors. We must improve our delivery and must be ready and able to act promptly to operationalise practical initiatives developed at the peace talks. Our support must be effectively coordinated to avoid duplication and overlap. By harmonizing our processes and procedures, and by pooling resources, we can help ensure that they do not impose an excessive burden on the administrative structures at national and local level in Sri Lanka.

The key is firm direction and coordination from the Government of Sri Lanka, with regular and open communication between Government and the donor group as a whole. I understand that efforts to improve coordination mechanisms, and to ensure that the Government play a lead role, are underway.

The focus of this Conference is on the immediate needs of internally displaced peoples seeking to return home and to restart their livelihoods. The proposed North East Recovery Fund is an important initiative to support this and an example of an agreement reached at the Peace Talks that needs to be promptly operationalized. Much needs to be done to get the Fund working. Systems and procedures, which ensure transparency, equity and value for money need to be defined. A management agent needs to be appointed, ideally an institution such as the World Bank. Monitoring processes need to be agreed. I hope that at this Conference we can agree a plan for completing these tasks promptly.

These then are our challenges for this Conference: to commit to, and follow up on, better coordination and cooperation, under the direction of the Sri Lankan Government; and to agree a plan to operationalise the North East Reconstruction Fund. I look forward to constructive discussion

Following the conference International Development Secretary Clare Short said:
"I am delighted to have been able to attend the 'Sri Lanka' Peace Process - support conference in Oslo today. The conference demonstrates UK and international support for the peace process in Sri Lanka. We have welcomed the positive and constructive progress of the peace talks and I commend both sides for the flexibility they have shown in the negotiations. The Norwegian Government deserves special praise for the important role they have played in facilitating the peace process.

The conference provided an opportunity to discuss the humanitarian and rehabilitation issues facing Sri Lanka; primarily in the North and East but also in the South. We also looked at human rights and the necessity for humanitarian agencies to have independent access to, and the ability to work freely with, communities in need of assistance.
I look forward to viewing progress on these issues when I visit Sri Lanka early next year. "