Relations between New Delhi and Colombo are at a "very high point" both politically and economically, Rohitha Bogollagama said complementing the Indian leadership for responding to his country's needs.
"Today, we have a very candid and strong relationship. We are quite close to each other and the relation translates into substantive economic and political development," he said in an interview with the PTI.
The coordinated defence mechanism between India and Sri Lanka in Palk Straits and seas surrounding the island nation to prevent arms smuggling by separatist Liberation Tigers of Tamil Eelam (LTTE) is "working well", he said.
Conceding that LTTE is still able to get arms, he said: "What we have to see is in the absence of an Indo-Lanka arrangement, how the LTTE would have fared."
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But he asserted that the government has been able to contain and restrict violence "unleashed" by LTTE.
The government is responding to the political needs of the country as it is clear from recent elections in the Eastern Province which would devolve power at the grassroots level, he said.
Bogollagama said the government was determined to resolve the ethnic issue politically and pointed to the elections in Eastern province.
Devolution of power is taking place in the province and the government would like to do the same in areas now controlled by the LTTE, he said.
Bogollagama said the LTTE, like all other terrorist organisations, is able to procure arms from huge illicit weapon arsenals available across the world. "But no government to my knowledge is helping it to get the arms."
Agreeing that procurement of illicit arms requires a lot of funds, he said LTTE is indulging in drug trafficking, money laundering and extortion especially from its diaspora. "These are good sources of money."
"Therefore, we have to counter terrorism in all its manifestations, including activities connected with money laundering and transfers," he said.
Asked whether his government would hold talks with LTTE, Bogollagama replied in the affirmative provided the outfit eschews violence and decides to adopt a political agenda.
"We do not rule out the need to respond to negotiations at any time. We have always said that. But LTTE has to fall in line of a political agenda. They are citizens of our country and we cannot deny them access to talk to us. But at the same time, the government would not compromise on liberation of the subjugated mass," he said.
The government wants everyone to embrace democracy and be part of a democratic set up, he said, asking if the Karuna faction, which broke away from LTTE, could come into mainstream, why can't others do it.
"Nothing prevents them from coming into the mainstream," he said, "and all issues have to be discussed and resolved politically."
The government, he added, is looking for ways to integrate LTTE cadres in society and rehabilitate them once they decide to come into the mainstream.
The minister said there is no problem between Tamils and Sinhalese as 54 per cent Tamils are living among the Sinhalese outside the country's north and east. "The only problem that needs to be tackled is terrorism."
Bogollagama, who was here to drum up support for his country's bid for the membership of Geneva-based Human Rights Council, expressed his confidence that Sri Lanka would be elected.
Several human rights groups have been opposing Sri Lanka's candidature alleging that it has a "dismal" rights record. But the minister contested their claims and said the opposition stemmed from the "vested interests".
"Sri Lanka has a democracy where rule of law prevails and human rights are part of its constitution. It subscribes to all human rights treaties and guarantees freedom of expression and faith," he said.
Another important factor that goes in its favour, he added, is that it is a multi-racial and multi-cultural country and never indulges in any discrimination. "Tamils and Sinhalese are treated equally," he said.
Even while fighting terrorism, he said, Sri Lanka's major focus is to protect human rights.
"The so-called allegations" come from certain groups having "vested interests" and that cannot be prevented, he said.