NEW DELHI: India had assured the Sri Lankan Government of "full assistance" after the recent air attack by the Liberation Tigers of Tamil Eelam (LTTE) on a military base near Colombo's international airport.

At the same time, External Affairs Minister Pranab Mukherjee made it clear on Wednesday that India preferred a negotiated solution to the ethnic problem in Sri Lanka and felt that a military solution was not feasible.

Mr. Mukherjee stated that a devolution package, currently under discussion in Sri Lanka, should be implemented to resolve the ethnic issue.

"Threat perception"

Asked about India's "threat perception" in the wake of the LTTE's air strike, Mr. Mukherjee replied that this depended on various circumstances. Without getting into specifics, he felt that terrorism and terrorist activity constituted the biggest threat to the world.

Separately, Sri Lankan President Mahinda Rajapaksa met Prime Minister Manmohan Singh on Wednesday and had a detailed discussion for about half-an-hour on bilateral and internal issues.

According to Government sources, trade matters between the two nations came up during the discussions. Mr. Rajapaksa also briefed the Prime Minister on efforts being made by his Government to devolve powers in the country.

Weapons stock

The Sri Lankan President also informed the Prime Minister about the latest attacks by the LTTE in Sri Lanka and its efforts to build up its weapons stocks.

Speaking at a post-SAARC summit press conference, Mr. Mukherjee did not think that the unilateral zero-duty regime announced by New Delhi for goods from least-developed countries (LDCs) in SAARC posed a threat to Indian industry.

According to him, both the market and consumption in India were expanding so fast that if New Delhi decided to reduce tariffs, there was no cause for apprehension.

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