Muslim party resolves row with Lanka govt

The National Unity Alliance (NUA) had given President Chandrika Kumaratunga until Tuesday to roll back Friday's deal with the rebels.

The party had however since decided to stick with the coalition, the party said.

"Following talks with the president, the NUA will not rock the boat," a party official said.

The president's office said she had agreed in talks with Muslim legislators to address their concerns.

"Their concerns were discussed in depth with the president," a statement said. "They proposed some options with the objective of resolving the issues causing their community apprehension."

The Muslim party had argued it was marginalised in the Norwegian-brokered deal to establish the aid-sharing mechanism, widely hailed as a prelude to restarting peace talks between the two sides.

Meanwhile, India said Monday it supports a controversial tsunami aid sharing deal agreed between the Sri Lankan government and the Tamil Tiger rebels last week.

India's foreign ministry said in a statement New Delhi hoped the implementation of the deal would "strengthen democratic processes and uphold pluralism" in Tamil Tiger-controlled parts of Sri Lanka.

Under the agreement signed on Friday last week, the Sri Lankan government and the Tigers will jointly handle millions of dollars in foreign aid for survivors of last year's tsunami disaster.