Foreign Secretary (Shri Ranjan Mathai): Prime Minister had bilateral meetings with Prime Minister of Nepal Mr. Baburam Bhattarai and with President of Sri Lanka Mahinda Rajapaksa. During the session yesterday he also briefly spoke to President Waheed of the Maldives.

With President Mahinda Rajapaksa of Sri Lanka, PM started first with a one-on-one discussion and then in delegation-level meeting. They covered all bilateral relations. On security related issues, they noted that our dialogue would be taken forward on the 29th June when the National Security Advisor Mr. Menon would be visiting Colombo. There was a substantial discussion on our economic relations, and the Power Minister of Sri Lanka gave an update on Sampur Power Project which is one of the very big projects being undertaken in Sri Lanka as a joint venture between the Ceylon Power Board and the NTPC.

In terms of the overall relationship, both felt that the scope for progress was very great and we must now concentrate on dealing with those areas where we can make good progress.

The President also referred to the situation within Sri Lanka and mentioned the continuing discussions on the issue of devolution. But the large focus was on what is being done for the rehabilitation of Internally Displaced People. He quoted the figure of about 3,000 who now continue to remain in the camps compared to 300,000 when the war ended.

He also noted that the resettlement process was under way, and electrification of the Northern Region, the Power Minister being present mentioned, was also making very good progress. They said that as much as 95 per cent electrification had been restored in Jaffna, and in the other areas in the Northern Province it was between 50 and 70 per cent.

Prime Minister once again underlined the great importance we attach in India to the ability of the Tamil people to lead a life of dignity and as equal citizens of that country. We expressed our intention to continue our assistance programmes. The housing project which India is undertaking will start actually disbursing funds to the beneficiaries for the houses in Sri Lanka by sometime next month because …(inaudible)… And we also reiterated our intention to continue all our bilateral assistance programmes in the economic field.