Britain has suspended aid payments to Sri Lanka because of growing concerns of human rights abuses by government forces fighting Tamil rebels.

As violence continued yesterday between troops and Tamil Tiger separatists in the north of the island, the British High Commission in Colombo confirmed that it was suspending £1.5 million in debt relief until the human rights situation improved.

The move was expected to anger the Sri Lankan Government, which claims that Tamil rebels are responsible for breaking a ceasefire agreement concluded in 2002. Since violence resumed 18 months ago, the Tigers have been blamed for a series of suicide attacks and even air strikes on Colombo airport by the fledgeling rebel air force.

Britain’s hardening attitude was revealed on Wednesday when Kim Howells, the Foreign and Commonwealth Office minister responsible for Sri Lanka, told the Commons that if Colombo was serious about peace it must distance itself from a spate of abuses blamed on government-backed forces. He accused the Tamil Tigers of atrocities and said that the group would remain a banned terrorist organisation in Europe while it conducted acts of violence. But he also criticised the Government and its paramilitary allies.

“The LTTE [Tamil Tigers] is not the only source of violence in Sri Lanka,” said Mr Howells. “Civilians in government-controlled areas regularly fall victim to brutal attacks by paramilitary groups, often acting with apparent immunity.”

After the tsunami disaster on Boxing Day 2004, Britain agreed to help to pay off Sri Lanka’s debt to free up funds for reconstruction. This year it was supposed to contribute £3 million and has already paid half the sum. It has now blocked the second tranche.

Gareth Thomas, a minister at the Department for International Development, told trhe Commons: “We believe that that sent a clear message to the Sri Lankan Government about our concerns. The outstanding payment will be made only when consultations have concluded with the Sri Lankan Government. Those consultations will, in particular, involve discussions about the human rights situation in Sri Lanka.”

There is little hope, however, that the current cycle of violence can be halted. Since the ceasefire broke down in 2005 more than 4,000 people have been killed and tens of thousands displaced. Yesterday Tamil separatists attacked government forces outside Vavuniya, the last government-held town in northern Sri Lanka. On Wednesday, 13 rebels were reported killed and there are fears that the conflict could be intensifying.

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