By Nilova Roy Chaudhury (Hindustan Times)

Denying that he was seeking a military solution to the ethnic crisis in Sri Lanka, President Mahinda Rajapaksa told the Hindustan Times on Saturday he sought a political solution.

"I don't believe in a military solution," the Sri Lankan President said when asked after his address to the HT Leadership Summit. "When they (the terrorists) attack, the army reacts. I want a political solution."

"While my government remains determined to fight terrorism, we are equally committed to seeking a negotiated and sustainable solution to the conflict in Sri Lanka," Rajapaksa said.

However, while "The Sri Lankan government is facing up to this terrorist challenge with increasing success today," Rajapaksa indicated in an exclusive interview to HT that, while he was willing to speak "anywhere, at any time" to the head of the Liberation Tigers of Tamil Eelam (LTTE) Velupillai Prabhakaran, he would not allow the LTTE to recoup and re-arm themselves.

"The LTTE is the only terrorist group with floating arsenals," he said, "and get their supplies through the sea lanes," which is why Sri Lanka is cooperating with India in "coordinated patrolling" of the sea lanes. Sri Lanka and India are also collaborating in "land-related policing of terrorist activities," Rajapaksa said, but denied that his government was seeking a Defence Cooperation Agreement or a Protection of Sri Lanka Act with India, or any other government.

The assassination of former Prime Minister Rajiv Gandhi showed how the LTTE had the "audacity" to even take India on.

The LTTE, he said, was collecting $ 10-13 million a month through "extortion of the diaspora in eastern countries" and gun running, of which they spend around $ 8 million, using the rest for armaments.

"We have a service agreement with the United States," to service Sri Lanka's military equipment, but "nothing more."

Rajapaksa spoke of the "home grown solution" his government is seeking, based on the Indian model of federalism, "to face up to Sri Lanka's issues of governance, including the conflict affecting the north of the country. A conflict which has been exploited by separatists forces who, through the use of unmitigated terror, pose a threat to India too."

He expects to get the final report from the 13-party committee that is preparing a devolution model for the island nation by December, after which it will be considered and acted upon.

Along with the search for "a speedy political solution," it was necessary to "curtail terrorist fund raising abroad and their illicit trafficking networks" and demonstrate to the terrorists "that the way forward is to join the democratic mainstream in good faith," Rajapaksa said.

The 13th Amendment to the proposed India – Sri Lankan Accord of 1987 would have been the ideal, he said, giving adequate autonomy to the northern provinces, but "Prabhakaran walked away and did not accept it" (The Rajiv Gandhi- JR Jayawardene Agreement).

Sri Lanka, he said, "needs to correct the growth imbalance that tends to confine development to certain politically advantaged areas of the country. In addressing this we find it necessary to overcome the current threat of terrorism that is consuming so much of our energies and resources."

"In this, it would not be out of place to look forward to understanding and assistance from our regional neighbours and friends, especially those with whom we share the strongest bonds throughout history. It will be to a mature and understanding India that her neighbours will look to for leadership in the region," said Rajapaksa, who met Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi on Saturday.

"India is giving us assistance and moral support," Rajapaksa said. "That is enough."