Sri Lanka has cancelled purchase of weapons and ammunition worth USD 200 million from China and Pakistan as its war against the LTTE has ended, the country's top defence official said on Wednesday.
The government cancelled orders for weapons valued at $200 million from China and Pakistan as the war against the LTTE was now complete and Tiger supremo Vellupillai Prabahakaran was dead, the new Chief of Defence Staff Sarath Fonseka told reporters after assuming office.
"We stopped the orders of 200 million dollar worth of ammunition from China and Pakistan as the war ended (in May) " Fonseka, the former Army chief who led the military in the war, said.
Fonseka also said that 800 former fighters of the Tamil Makkal Viduthalai Pullikal (TMVP) would join the Sri Lankan armed forces.
Currently the Island Nation is seeking USD 1.9 billion IMF loan to shore up its foreign exchange reserves which have come under strain due to the global economic slowdown.
He also said that an Indian contingent of deminers will arrive in the country to clear mines laid down in northern Sri Lanka.
The Sri Lankan budget for 2009 provides for a record 1.6 billion defence spending, a seven per cent hike as compared to the previous year.