Defence Secretary Liam Fox’s friend Adam Werrity has been accused of discussing arms deals with the Sri Lankan Government, Channel 4 reported tonight.

Three ‘highly placed sources’ in Sri Lanka have independently told Channel 4 news team that Mr Werrity discussed ‘arms deals’ with a senior figure in Mahinda Rajapakse’s regime.

He was reportedly asked by the Sri Lankan official to lobby the British Government over the supply of ‘arms, security equipment and aviation parts’.

Speaking to the Indian foreign secretary, Ranjan Mathai, during his 3 day visit of Sri Lanka and the North-East, Anandasangaree of the TULF, Sitharthan of the PLOTE and Sritharan of the EPRLF, condemned the Sri Lankan government's attempt to "change the demographic pattern of the North-East".

They added that Tamils were 'highly perturbed' by the ever increasing militarisation of the North-East.

Mr. Adam Werritty, the close friend of British Defence Secretary Liam Fox whose working relationship with the minister is under investigation by the Ministry of Defence and at the centre of a media storm, was a frontman for Dr. Fox in the latter’s dealing with Sri Lanka, The Daily Telegraph newspaper revealed Monday.

A senior source at the British Foreign Office told The Times Sunday night that there had been disquiet at Defence Secretary Liam Fox’s links to Sri Lankan President Mahinda Rajapaksa since late last year.

Dr Fox sent a senior delegation of British naval officers to the inauguration of Rajapaksa in what the Sri Lankan regime believed was a gesture of support for his second term as President, the paper reports Monday.

In its lead editorial Monday, The Times newspaper said UK Defence Secretary Liam Fox owed the country “an explanation and an apology” for having given unparalleled official access to the Ministry of Defence and talks overseas to Adam Werrity, a close friend.

The editorial adds:

India will help in re-building 79 schools in the war-shattered Vanni, visiting Foreign Secretary Ranjan Mathai said Monday.

The schools are located in Vavuniya, Mullaithivu and Kilinochchi, he told reporters.

India will also restore the famous Tirukoteeswaram Temple in Mannar, and has offered help in restoration of another ancient temple near Sampur.

Asked about the once much-vaunted, but crawling, Indian housing project, which he visited on Sunday, he agreed that the pace of progress was slow.

Addressing soldiers gathered for the army's 62nd anniversary parade, army commander, Jagath Jayasuriya, congratulated them on the 'major development role' they are purported to have played in the North-East.

The Sri Lankan Prime Minister has said that the people in Sri Lanka have once again endorsed the policies of President Rajapakse’s Government.

In a statement, released after the landslide victory for Rajapakse’s Party in the south of the island, Mr Jayaratne says that the people, who voted for the United People’s Front Alliance, want to see continued development of the country.

Finance Ministry Secretary Dr. P.B. Jayasundara said,

Voicing serious concern over increasing attacks on Tamil Nadu fishermen by the Sri Lankan navy, chief minister J. Jayalalithaa said such assaults on Indian citizens should be viewed as "an act of provocation and aggression against India."

Ms. Jayalalithaa conveyed her strong sentiments to foreign secretary Ranjan Mathai, who called on her here ahead of his three-day Colombo visit beginning Sunday.

Indian press reports quoted her as saying: