The Japanese Government, indicating its growing confidence in the continuity of the Sri Lankan peace process has decided to schedule the second donor conference, expected to garner a bigger quantum of aid, between June 15 to 20 in Tokyo, Cabinet spokesman Prof. G.L. Peiris said yesterday.

Addressing the weekly Cabinet media briefing Prof. Peiris said: "The Japanese government had earlier stated they will call for a donor conference only when substantial progress in the Peace Talks has been achieved."

"Their decision to schedule the conference which will be a much larger one compared to the Oslo conference, targeting aid for the whole country, with the presence of multilateral donors, for mid June indicates that they are pleased with the progress so far," he said.

Prof. Peiris said this was very encouraging given that there had been many instances of conflicts of opinion between the negotiating parties.

The mini Oslo conference had a limited objective and was aimed at obtaining funds for a period of six months. It was attended only by the bi-lateral donors. The total assistance gained was US $ 85 million.

The Japanese Government, with the commencement of the historic peace initiative with the bilateral ceasefire declared in February last year, has shown interest in helping to revive the Lankan economy.

Their special envoy Yasushi Akashi will play a key role as a special advisor in Prime Minister Ranil Wickremesinghe's 'Regaining Sri Lanka' initiative, which is aimed at economic and social resurgence.

Akashi who arrived in the country on Wednesday was present at the meeting of the sub-committee on Immediate Humanitarian and Resettlement Needs in the North and East yesterday.

He will also visit Hambantota and Matara accompanied by Minister Milinda Moragoda to oversee Japanese funded projects now in progress in the South.