cease-fire beginning 24 December 2001 (the first in seven years), renewed in January 2002. With the lifting of a seven-year-old embargo on LTTE-controlled territory, it seemed peace was not a pipe dream. But the peace process stalled in 2003, although there was laudable cooperation between the government and the LTTE after the December 2004 tsunami. This mind-boggling disaster mauled a shocking 80% of Sri Lanka’s coastline. More than 35,000 people lost their lives in the disaster and tens of thousands remain homeless, with reconstruction of housing proceeding slowly. International aid got roads, railways and other vital infrastructure working again, but long-term rebuilding is going more slowly – especially as the world’s attention has moved elsewhere. The 2005 election of Mahinda Rajapaske as president came after the LTTE boycotted the election. A hardliner, he immediately took a tougher line with the Tigers and 2006 saw an increasing level of hostilities between the government and the LTTE, with clashes in both the north and the usually peaceful south. It’s all been devastating for vital tourism, which during pre-tsunami 2004 seemed poised to take off.
all info taken from www.lonelyplanet.com