Lanka to work on new devolution offer

But the Liberation Tigers of Tamil Eelam LTTE reserved judgement on the government initiative, peace negotiations are still stalled and analysts fear a recent surge in clashes between the rebels and military could still spiral into all-out war. 8216;8216;A core group of representatives from each party will set out a basic broad framework within which the devolution package could be discussed,8217;8217; said Ajith Nivard Cabraal, a senior aide to President Mahinda Rajapakse, after the all-party meeting.

8216;8216;All are in agreement that we should not have a final framework until such time as they discuss it with the LTTE,8217;8217; he added, saying any final devolution offer was still months off, at best.

The government and rebels are still poles apart over the Tigers8217; central demand that their de facto state in the island8217;s north and east be recognised as a separate homeland for ethnic Tamils.

The rebel acceptance comes just days after the 25-nation EU blacklisted them as a terrorist group and moved to freeze their assets. 8216;8216;We have decided to attend talks in Oslo, but they will only be talks about truce monitor safety and not peace talks,8217;8217; said rebel media coordinator Daya Master said in Kilinochchi.