Sri Lanka postpones referendum

President Chandrika Kumaratunga battles a deep political crisis

COLOMBO, Sri Lanka -- Sri Lankan President Chandrika Kumaratunga has bowed to opposition pressure, putting off an August 21 referendum on controversial constitutional reforms.

State radio said the plebiscite, called after Kumaratunga suspended parliament last month ahead of a no-confidence vote on her minority government, would be delayed to allow more time to build consensus on the reforms.

"The August 21 referendum has been postponed until October 18," the radio quoted a statement from the president's office as saying.

The decision to shelve the referendum for three months at such a late stage has come amid a mounting opposition campaign against the referendum and fears among her own supporters that the proposed changes might be rejected by voters.

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Sri Lanka was thrown into deep political crisis last month when Kumaratunga suspended parliament to avoid a vote of no confidence in her government, and called for a referendum on as yet unspecified changes in the constitution.

The president has maintained that the changes would do away with the current system of proportional representation and would give her party its rightful strength in parliament after early elections.

She has said a fresh and strong mandate from voters would give her the power to help end the 18-year old war against Tamil separatists in the north and the east of the country, and would allow her to tackle the country's worsening economic problems.

Opposition parties have been calling for a reconvening of parliament, but in the past few days there has been mounting speculation about the formation of a government of national reconciliation, in which the post of prime minister would go to an opposition leader.

One year in office

Two were killed during street battles in Colombo last month

The delay would fix the widely criticised referendum after October 10, one year after the last general election and the earliest point at which the constitution would permit Kumaratunga to dissolve parliament.

"To continue with the referendum at this time might exacerbate confrontation at various levels rather than facilitating the evolving consensus on constitutional reforms," the statement said.

Opposition parties staged large protests in the capital Colombo last month, accusing Kumaratunga of pushing Sri Lanka towards dictatorship. Demonstrators waged street battles with police in which two people were killed and 80 injured.

But the main opposition United National Party (UNP) on Tuesday offered Kumaratunga a way out of the country's worst political crisis in a decade by saying it was willing to back the ruling coalition and other parties "on a limited agenda, for a limited time" if the referendum was cancelled.

The UNP and smaller parties said the agenda would be limited to a series of democratic reforms, including the appointment of independent commissions to run the judiciary, public service, elections, police and state media, and a trimming of presidential powers.

The presidential statement hinted at the offer by saying "some parties ... have agreed to support the government to introduce the most urgent amendments."

But it said Kumaratunga was only giving the opposition more time to agree the entire reform package, which contains disputed plans to change the electoral system and give greater power to the regions, including one controlled by the Tamil minority.

"If they fail to reach agreement ... Her Excellency will not hesitate to consult the people directly," said the statement.

Conceding to Tamils

Tamil Tigers are waging a war in the country's north and eastern provinces

Hours before the announcement, more than a thousand members of the powerful Buddhist clergy gathered in the capital Colombo to denounce the reforms, saying they would concede too much to Tamils, who are mainly Hindu.

Their sentiments are echoed by many nationalist parties among the majority Sinhalese, most of whom are Buddhists.

Other opposition groups have also denounced the reforms, saying they would help keep Kumaratunga in power, particularly if she is allowed to overhaul the electoral system. She says that system denied her party a parliamentary majority.

The reforms broadly resemble a draft constitution shelved last year amid big street protests led by Buddhist monks after Kumaratunga failed to obtain the necessary two-thirds majority.

A key government ally crossed the floor of the house in June, giving the opposition 116 seats in the 225-member parliament, which is scheduled to be reconvened on September 7.

The opposition offers of support prompted local media speculation that Kumaratunga would cancel the referendum and buy time until she could dissolve parliament.

Reuters contributed to this report.