The two sides formalized a Memorandum of Understanding (MoU) on 22 February 2002, and signed a permanent cease-fire agreement (CFA).
Norway was named mediator, and it was decided that they, together with the other Nordic countries, monitor the cease-fire through a committee of experts named the Sri Lanka Monitoring Mission.
In August the government agreed to lift the ban on the LTTE and paved the way for the resumption of direct negotiations with them.

Following the signing of the ceasefire agreement, commercial air flights to Jaffna began and the LTTE opened the key A9 highway, which linked the government-controlled area in the south with Jaffna and ran through LTTE territory, allowing civilian traffic through the Vanni region for the first time in many years (but only after paying a tax to the LTTE).
Many foreign countries also offered substantial financial support if peace was achieved and optimism grew that an end to the decades-long conflict was in sight.

The much-anticipated peace talks began in Phuket, Thailand, and further rounds followed in Thailand, Norway, Germany and Japan.
During the talks both sides agreed to the principle of a federal solution and the Tigers dropped their long-standing demand for a separate state.
This was a major compromise on the part of the LTTE, which had always insisted on an independent Tamil state.
This also represented a compromise on the part of the government, which had seldom agreed to more than minimal devolution.
Both sides also exchanged prisoners of war for the first time.
The two sides formalized a Memorandum of Understanding (MoU) on 22 February 2002, and signed a permanent cease-fire agreement (CFA). Norway was named mediator, and it was decided that they, together with the other Nordic countries, monitor the cease-fire through a committee of experts named the Sri Lanka Monitoring Mission. In August the government agreed to lift the ban on the LTTE and paved the way for the resumption of direct negotiations with them.
Following the signing of the ceasefire agreement, commercial air flights to Jaffna began and the LTTE opened the key A9 highway, which linked the government-controlled area in the south with Jaffna and ran through LTTE territory, allowing civilian traffic through the Vanni region for the first time in many years (but only after paying a tax to the LTTE). Many foreign countries also offered substantial financial support if peace was achieved and optimism grew that an end to the decades-long conflict was in sight.
The much-anticipated peace talks began in Phuket, Thailand, and further rounds followed in Thailand, Norway, Germany and Japan. During the talks both sides agreed to the principle of a federal solution and the Tigers dropped their long-standing demand for a separate state. This was a major compromise on the part of the LTTE, which had always insisted on an independent Tamil state. This also represented a compromise on the part of the government, which had seldom agreed to more than minimal devolution. Both sides also exchanged prisoners of war for the first time.
Sri Lankan Civil War