The recent violence between Tamils and Muslims in Sri Lanka’s eastern province was the second of its kind in the island after the ceasefire on February 22, 2002. While allegations and counter allegations continue between Muslims and Tamils over the killing of two Muslims in communal violence in August, both the communities are living in constant fear and tension. Following the recent killings, a group of Muslims attempted to attack a bus escorting Tamils from Trincomalee to Pachchanoor. In another incident five Tamil farmers were attacked in Muslim dominated Mutur area.

There is no doubt that the country is facing another bout of ethnic crisis in its eastern province, which is certainly posing a threat to the 19 months peace process. The Defense Minister’s order to send the security forces on August 19 shows that the situation on the ground is volatile.

Following the attack, Sri Lanka Muslim Congress (SLMC) and the North-East Muslim Parliamentarians' Alliance (NEMPA) members threatened to boycott the "peace talks" unless the Muslims were accepted as a separate delegation at the next round of talks between the Government and the LTTE. They have decided that future support to the Government would be conditional on whether or not authority is delegated to the SLMC to administer the Muslim dominant areas of the east. The NEMPA General Secretary M L Hisbullah on August 13 said like Tamil areas should be brought under one interim administration, Muslim areas should be brought under a separate interim administration in the merged northeast.

There are 3.2 million Tamils and 1.3 million Muslims in Sri Lanka. Muslims comprise about 8 per cent of the island's population and one-third of the community is living in the eastern province. There has always been a perception in certain sections of the Sinhala community that Muslims are as much a threat as the Tamils. There is similar feeling amongst the Tamils also.

Although clashes between Muslims and Tamils are a cause of long-standing friction, this time it has become more serious because of the LTTE’s demand for a separate northeast administrative province. In the past two decades approximately 700 Muslims have died in separate incidents. Some 8000 families were displaced in Mutur and other areas. Earlier, on 18 April 2003, eight people were wounded in fighting between Muslims and Tamils in Mutur, after Muslims protested the alleged abduction of two youths by Tamil Tiger terrorists. Even the Tigers have been accused of evicting about 100,000 Muslims from the Tamil-majority Jaffna peninsula. In 1990, the Tamil Tigers evicted over 16,000 Muslim families from their ancestral homes. Thousands of Muslims are still living in refugee camps in the northwest and the east.

Majority Muslims feel they would be treated as second-class citizens under the Tamil administration, if Government accepts LTTE’s demand for independent administration in the east. They also do not trust the Tamils, who are mostly Hindus. As a result, Muslims are demanding a separate Muslim administrative district in eastern province, which is against LTTE’s demand. In case the Wickremasinghe Government fails to provide security to Muslims and their demand for a separate district, there will be a threat to the ruling party. The SLMC has 12 seats in the 225 member parliament.  Further, if Government accepts Muslim demand, the LTTE might withdraw from the peace process.

Currently, Muslim groups backed by the SLMC are hoarding arms and training youths to lunch attacks against Tamils in the East. The Varathar faction of the Eelam Peoples’ Revolutionary Liberation Front (EPRLF) is reportedly selling arms to these groups. It has been reported that the Baticalloa district Muslim youths have already formed a suicide squad named ‘Osama’ to counter future LTTE attacks in the district. Even, the Colombo based Muslim youth organizations are also thinking to form a similar squad against any atrocities against Muslims in that region.

Since the US attacks on Al Qaeda bases in Afghanistan, there are expression of pro-Osama bin Laden sympathies by sections of the Muslim youth in Sri Lanka, including the eastern province. Muslim youth are receiving weapons training and some are even allegedly being dispatched abroad for this purpose. The formation of suicide squad by the Batticaloa district Muslim youths in the name of Al Qaeda leader Osama bin Laden indicates aggressive preparations by Islamist extremist groups for jehad on the island. It seems these extremist groups might get support from Laden to fight against Hindu Tamils and also for a separate Muslim controlled administrative area in eastern province.