<b>Bush Pledges Help for Sri Lanka</b>

GEORGE GEDDA, Associated Press Writer

Washington (AP) - President Bush ( news - web sites) promised visiting Sri Lankan Prime Minister Ranil Wickremesinghe his full backing Wednesday for the South Asian leader's efforts to end his country's long and devastating civil war.

Bush said he would send teams to Sri Lanka to assess how best to support the peace process and also to promote economic development.

The government and Tamil Tiger rebels have been observing a cease-fire since February and expect to open peace talks next month.

More than 64,000 people have been killed in the 19-year conflict.

Wickremesinghe was upbeat after his discussions.

"President Bush and the U.S. government has given us all the encouragement to go ahead with the political process to bring peace to Sri Lanka," he said.

Wickremesinghe also met with Secretary of State Colin Powell ( news - web sites) and with World Bank ( news - web sites) officials. His visit is the first to Washington by a Sri Lankan leader in 18 years.

Wickremesinghe told an afternoon news conference that the Sept. 11 terrorist attacks in the United States changed the political climate in his country for the better.

"It helped create an environment for a settlement," he said.

He told the Washington Times earlier this week that a U.S. cutoff of transfers from Tamil expatriates to rebels back home forced the insurgents to moderate their position.

The State Department has put the Tigers, known formally as the Liberation Tigers of Tamil Elam, on its list of foreign terrorist organizations.

The designation makes it illegal for supporters in the United States to transfer funds to the group.

At his news conference, Wickremesinghe said a new concern for his government is the sharp decline in stock prices in the United States recently.

He said the decline could mean fewer legitimate fund transfers from Sri Lankans living in the United States to friends and relatives back home.

After his meeting with Bush, Wickremesinghe said Sri Lanka hopes to qualify for U.S. assistance under the Millennium Challenge Accounts.

The program would extend aid to countries that pursue what the administration considers to be sound economic policies and other elements of good government.

"Sri Lanka has all the criteria necessary to succeed," Wickremesinghe said.

-Yahoo News -