Foreign remittance, Sri Lanka’s top foreign exchange earner, is suffering as tens of thousands of Sri Lankans employed over seas are laid off due to the global financial crisis.

The Sri Lankan government says it has formally outlawed the Liberation Tigers of Tamil Eelam.

Describing several recent escalation in incidents where Sri Lanka Armed Forces have targetted Tamil civilian during festive days between Christmas and Thaipongal, TNA, in a press release said that the "stringent economic, food and medical embargos on the war affected areas, ... are not only War Crimes in contravention of the Geneva Conventions but are also a part of a policy of Genocide that the Sri Lankan State has been carrying out against the Tamil people."

Politicians and activists across Tamil Nadu have expressed their opinion that the Sri Lankan state is engaged in genocide against the Tamils on the island.

Living in constant fear, the Tamils are considered fugitives in Sri Lanka

Showing utter disregard to the sentiments expressed by the leaders and people of Tamil Nadu following the occupation of Kilinochchi by the Sri Lankan security forces, the Congress party asked Sri Lanka to hand over LTTE leader Pirapaharan if he is caught so that he faces trial for the assassination of former Prime Minister Rajiv Gandhi.

“So,” said the driver as we settled into our seats for a four-hour ride to our resort in Sri Lanka’s tea country, “Do you think the economic crisis will get better in 2009?”

The year 2008 may well go down in history as a watershed in which the global financial crisis, precipitated by the collapse of Western economic models, ‘decolonised' Asians minds, say observers.

The Sinhala people in the south celebrated the occupation of Kilinochchi town by the Sri Lankan security forces by taking to the streets in large numbers waving flags and lighting firecrackers across towns and villages in the south of the island.

The LTTE vowed to fight on even if they lose more territory inside the area they want to establish as a separate nation for Sri Lanka's Tamil minority, reported Reuters.

The capture of Kilinochchi was celebrated with the bursting of crackers here in the Sri Lankan capital. There were also reports that the Sinhala diaspora celebrated it with the bursting of Champagne bottles. No wonder such things happen in a culture nurtured by cricket and football matches.

The Sri Lankan military authorities on Friday January 2 said their forces have occupied the town of Kilinochchi in Vanni, situated 320 km north of Colombo.

Political parties in Tamil Nadu took out their anger on the Congress led central government for the fall of Kilinochchi and condemned it for the inaction over the issue even after an unanimous declaration by the State Assembly of Tamil Nadu demanding immediate ceasefire in Sri Lanka.

"Kilinochchi within kissing distance". So said the disinformation warriors of Lt.Gen.Sarath Fonseka, the Sri Lankan Army Commander, more than a week ago.