The People's Alliance Government which assumed office in Sri Lanka in 1994 inherited the problem of military discord between the Sinhalese and Tamil communities. Unlike some former governments, however, the present government of Sri Lanka has taken the position that only meaningful political and economic change can truly resolve the conflict. The issues underlying the ethnic discord can only be successfully addressed by a comprehensive and feasible constitutional arrangement that provides for power sharing between the central government and peripheral areas. Such an arrangement would devolve responsibility for development-related decisions to the diverse sections of the Sri Lankan nation. Only such a political settlement, which has, as its principal aim, the development of a united, peaceful, and prosperous Sri Lankan nation, can bring peace.