I. Summary
Sri Lanka continued its nation­wide demand reduction campaign in 1997, and the country also remained a strong regional player in counternarcotics cooperation during the year. Implementation of the counternarcotics master plan, begun in 1994, continued. Cannabis eradication increased, but seizures decreased, and there was also a decrease in the number of drug­related arrests due to police preoccupation with the conflict against the Liberation Tigers of Tamil Eelam (LTTE), a terrorist organization fighting for a separate state in the northeast of the country. The government of Sri Lanka was a leader in counternarcotics activities in the South Asian Association for Regional Cooperation (SAARC). The government continued to make available to other SAARC countries a US government­funded database on narcotics arrests and related information. Efforts at public education on drug abuse also continued during the year. Sri Lanka is a party to the 1988 UN Drug Convention, although enabling legislation for the Convention had not been presented to Parliament by the end of 1997. In a new development, the government has begun work to introduce legislation on control of precursor chemicals. I. Summary
Sri Lanka continued its nation­wide demand reduction campaign in 1997, and the country also remained a strong regional player in counternarcotics cooperation during the year. Implementation of the counternarcotics master plan, begun in 1994, continued. Cannabis eradication increased, but seizures decreased, and there was also a decrease in the number of drug­related arrests due to police preoccupation with the conflict against the Liberation Tigers of Tamil Eelam (LTTE), a terrorist organization fighting for a separate state in the northeast of the country. The government of Sri Lanka was a leader in counternarcotics activities in the South Asian Association for Regional Cooperation (SAARC). The government continued to make available to other SAARC countries a US government­funded database on narcotics arrests and related information. Efforts at public education on drug abuse also continued during the year. Sri Lanka is a party to the 1988 UN Drug Convention, although enabling legislation for the Convention had not been presented to Parliament by the end of 1997. In a new development, the government has begun work to introduce legislation on control of precursor chemicals.

II. Status of Country
Sri Lanka has a comparatively modest drug problem. There has been, however, a slight but steady increase in narcotics consumption-particularly heroin-in recent years. The Ministry of Defense (MOD) has overall responsibility for all counternarcotics and demand reduction activities, but the ongoing conflict with the LTTE drains much of the Ministry's resources, leaving it limited time and funding to address the drug problem. Sri Lanka's 1,100 miles of coastline cannot be adequately patrolled, especially since Sri Lanka's naval forces are heavily engaged in the ongoing conflict. Sri Lanka's popularity as a transshipment point for narcotics from South and Southeast Asia has consequently grown, although we do not have evidence that these drugs are coming to the US in quantities large enough to have a significant effect on the US. Police officials in the southern Indian State of Tamil Nadu continued to report drug smuggling activities among Sri Lankan Tamil refugees living there. It is widely believed, moreover, that the LTTE helps finance its insurgency through drug trafficking, although neither the embassy nor the Police Narcotics Bureau (PNB) have any firm evidence to support this suspicion.
Sri Lanka has a comparatively modest drug problem. There has been, however, a slight but steady increase in narcotics consumption - particularly heroin-in recent years. The Ministry of Defense (MOD) has overall responsibility for all counternarcotics and demand reduction activities, but the ongoing conflict with the LTTE drains much of the Ministry's resources, leaving it limited time and funding to address the drug problem. Sri Lanka's 1,100 miles of coastline cannot be adequately patrolled, especially since Sri Lanka's naval forces are heavily engaged in the ongoing conflict. Sri Lanka's popularity as a transshipment point for narcotics from South and Southeast Asia has consequently grown, although we do not have evidence that these drugs are coming to the US in quantities large enough to have a significant effect on the US. Police officials in the southern Indian State of Tamil Nadu continued to report drug smuggling activities among Sri Lankan Tamil refugees living there. It is widely believed, moreover, that the LTTE helps finance its insurgency through drug trafficking, although neither the embassy nor the Police Narcotics Bureau (PNB) have any firm evidence to support this suspicion. 

III. Country Actions Against Drugs in 1997
Policy Initiatives. The government of Sri Lanka continued to implement a counternarcotics master plan developed in 1994 in consultation with the UNDCP. A comprehensive counternarcotics legislative package drafted by the National Dangerous Drugs Control Board (NDDCB), the government agency responsible for coordinating national drug policies, was still under review by the government and had not been presented to Parliament by the end of the year. The package focuses on three counternarcotics issues: 1) Prohibiting narcotics­related money laundering and providing for asset forfeiture; 2) enacting new legislation to implement the UN Convention and the 1990 SAARC Convention on Narcotic Drugs and Psychotropic Substances, including provisions for extradition and mutual legal assistance; and 3) Initiating new legislation providing for the treatment and rehabilitation of drug addicts. Sri Lanka is also in the process of drafting legislation on the control of precursor chemicals. III. Country Actions Against Drugs in 1997
Policy Initiatives. The government of Sri Lanka continued to implement a counternarcotics master plan developed in 1994 in consultation with the UNDCP. A comprehensive counternarcotics legislative package drafted by the National Dangerous Drugs Control Board (NDDCB), the government agency responsible for coordinating national drug policies, was still under review by the government and had not been presented to Parliament by the end of the year. The package focuses on three counternarcotics issues: 1) Prohibiting narcotics­related money laundering and providing for asset forfeiture; 2) enacting new legislation to implement the UN Convention and the 1990 SAARC Convention on Narcotic Drugs and Psychotropic Substances, including provisions for extradition and mutual legal assistance; and 3) Initiating new legislation providing for the treatment and rehabilitation of drug addicts. Sri Lanka is also in the process of drafting legislation on the control of precursor chemicals.

Illicit Cultivation and Production. Cannabis is the only illicit narcotic cultivated and produced in Sri Lanka; however, cannabis grown in Sri Lanka has no effect on the United States. Many of the areas where cannabis is grown are located in heavy jungle in the southeastern part of the island. In January, the police detected a large 50­acre cannabis plantation in the south of the country and destroyed the crop. Police continued to rely primarily on informants to find the location of cannabis plants. Illicit Cultivation and Production. Cannabis is the only illicit narcotic cultivated and produced in Sri Lanka; however, cannabis grown in Sri Lanka has no effect on the United States. Many of the areas where cannabis is grown are located in heavy jungle in the southeastern part of the island. In January, the police detected a large 50­acre cannabis plantation in the south of the country and destroyed the crop. Police continued to rely primarily on informants to find the location of cannabis plants.

Regional Cooperation. Sri Lanka plays a leading role in regional anti­narcotics cooperation. A computer program developed by the Police Narcotics Bureau and funded by the US government hosts a regional database of narcotics arrests and other information. The database is available to law enforcement agencies throughout SAARC. The Drug Advisory Program of the Colombo Plan (an international organization headquartered in Colombo, Sri Lanka) conducted a series of successful counternarcotics­related training programs in the region, some of which were funded by the US government. The US ambassador in Thailand was a guest speaker at one such program. Regional Cooperation. Sri Lanka plays a leading role in regional anti­narcotics cooperation. A computer program developed by the Police Narcotics Bureau and funded by the US government hosts a regional database of narcotics arrests and other information. The database is available to law enforcement agencies throughout SAARC. The Drug Advisory Program of the Colombo Plan (an international organization headquartered in Colombo, Sri Lanka) conducted a series of successful counternarcotics­related training programs in the region, some of which were funded by the US government. The US ambassador in Thailand was a guest speaker at one such program.

Demand Reduction. The NDDCB continued an aggressive, nationwide public education campaign which included a weekly radio program that reached audiences throughout the island; seminars for judicial officers; hundreds of drug awareness seminars attended by students teachers and parents; training programs on drug abuse prevention; youth camps for youth leaders; counseling programs at the State Detention Home; and treatment programs at residential treatment centers. A family­based prevention/treatment program begun in 1994 continued in 1997 and the number of people utilizing rehabilitation centers continued to increase. The International Society of the Colombo Plan sponsored several seminars aimed at reducing drug abuse among the youth of Sri Lanka; an embassy officer was invited to speak at two of these programs in 1997. Demand Reduction. The NDDCB continued an aggressive, nationwide public education campaign which included a weekly radio program that reached audiences throughout the island; seminars for judicial officers; hundreds of drug awareness seminars attended by students teachers and parents; training programs on drug abuse prevention; youth camps for youth leaders; counseling programs at the State Detention Home; and treatment programs at residential treatment centers. A family­based prevention/treatment program begun in 1994 continued in 1997 and the number of people utilizing rehabilitation centers continued to increase. The International Society of the Colombo Plan sponsored several seminars aimed at reducing drug abuse among the youth of Sri Lanka; an embassy officer was invited to speak at two of these programs in 1997.

Law Enforcement Efforts. The Police Narcotics Bureau, the Customs Service, and the Department of Excise are collectively tasked with eradicating cannabis production. The police enjoyed success in several major drug operations involving heroin and opium smuggling during the course of the year. Seizures, however, were down through October 1997-61.8 metric tons, compared with full­year figures of 96.4 metric tons in 1996 and 59.4 metric tons in 1995. An estimated 10,499 people were arrested on drug­related charges in the first 10 months of 1997. This compares with full­year figures of 14,794 arrested in 1996 and 13,487 arrested in 1995. An increasing number of police personnel concentrate on military and security operations against the LTTE terrorist threat, perhaps explaining the decline in seizures, despite other evidence of a modest increase in narcotics abuse and trafficking. Through October 1997, most of those arrested for narcotics­related offenses had been prosecuted. Law Enforcement Efforts. The Police Narcotics Bureau, the Customs Service, and the Department of Excise are collectively tasked with eradicating cannabis production. The police enjoyed success in several major drug operations involving heroin and opium smuggling during the course of the year. Seizures, however, were down through October 1997-61.8 metric tons, compared with full­year figures of 96.4 metric tons in 1996 and 59.4 metric tons in 1995. An estimated 10,499 people were arrested on drug­related charges in the first 10 months of 1997. This compares with full­year figures of 14,794 arrested in 1996 and 13,487 arrested in 1995. An increasing number of police personnel concentrate on military and security operations against the LTTE terrorist threat, perhaps explaining the decline in seizures, despite other evidence of a modest increase in narcotics abuse and trafficking. Through October 1997, most of those arrested for narcotics­related offenses had been prosecuted.

Corruption. There was no evidence that public officials were involved in narcotics trafficking in 1997. The government set up in 1994 a permanent commission to investigate charges of bribery and corruption against public officials. The commission reported no cases of drug-related corruption. Corruption. There was no evidence that public officials were involved in narcotics trafficking in 1997. The government set up in 1994 a permanent commission to investigate charges of bribery and corruption against public officials. The commission reported no cases of drug-related corruption.

Agreements and Treaties. Sri Lanka is a party to the 1988 UN Drug Convention, as well as to the 1990 SAARC Convention on Narcotic Drugs and Psychotropic Substances. Enabling legislation for both conventions has been drafted, but not yet presented to Parliament. The legislation as drafted will include specific provisions for extradition for narcotics­related offenses. Since Sri Lanka is a member of the British Commonwealth, extradition matters between Sri Lanka and the US are currently covered by the 1931 US­UK Extradition Treaty. Sri Lanka is also a party to the World Customs Organization (WCO) International Convention on Mutual Administrative Assistance for the Prevention, Investigation and Repression of Customs Offenses ­ the Nairobi Convention ­ Annex X on Assistance in Narcotics Cases. Agreements and Treaties. Sri Lanka is a party to the 1988 UN Drug Convention, as well as to the 1990 SAARC Convention on Narcotic Drugs and Psychotropic Substances. Enabling legislation for both conventions has been drafted, but not yet presented to Parliament. The legislation as drafted will include specific provisions for extradition for narcotics­related offenses. Since Sri Lanka is a member of the British Commonwealth, extradition matters between Sri Lanka and the US are currently covered by the 1931 US­UK Extradition Treaty. Sri Lanka is also a party to the World Customs Organization (WCO) International Convention on Mutual Administrative Assistance for the Prevention, Investigation and Repression of Customs Offenses ­ the Nairobi Convention ­ Annex X on Assistance in Narcotics Cases.

Drug Flow/Transit. Heroin and hashish are the only narcotics that have been detected transiting Sri Lanka in significant quantities, although five people were arrested in an opium smuggling case in March 1997. Most seizures take place at Katunayake International Airport near Colombo, but the Police Narcotics Bureau believes that a substantial number of transhipments-mostly heroin from India-take place along the Sri Lankan coast. Sri Lanka has no coast guard and its naval vessels are principally engaged in operations against the LTTE, and thus there is little reliable information on maritime transshipments of drugs. There is no evidence that narcotics transiting Sri Lanka have a significant effect on the US. Drug Flow/Transit. Heroin and hashish are the only narcotics that have been detected transiting Sri Lanka in significant quantities, although five people were arrested in an opium smuggling case in March 1997. Most seizures take place at Katunayake International Airport near Colombo, but the Police Narcotics Bureau believes that a substantial number of transhipments-mostly heroin from India-take place along the Sri Lankan coast. Sri Lanka has no coast guard and its naval vessels are principally engaged in operations against the LTTE, and thus there is little reliable information on maritime transshipments of drugs. There is no evidence that narcotics transiting Sri Lanka have a significant effect on the US.

As in previous years, the USG helped several Sri Lankan organizations in their counternarcotics efforts. In 1997, the USG provided over $12,000 to the NDDCB and over $2,400 to the Federation of Nongovernmental Organizations against Drug Abuse (FONGOADA) for equipment purchases. The Netherlands Police also assisted the Sri Lankan Police Narcotics Bureau in expanding the PNB's counternarcotics computer system. Sri Lankan police and customs officials also benefited from training funded and conducted by the British Government.

IV. US Policy Initiatives and Programs
The US government works with Sri Lankan counternarcotics organizations in support of their efforts to promote awareness of the dangers of narcotics among the general population. In addition to providing occasional material and financial support, the US Embassy in Sri Lanka has actively participated in community awareness seminars. The US government hopes to advance self­sufficiency and cooperation among law enforcement and other government officials working on narcotics issues in Sri Lanka and the region. In terms of regional efforts, the US has provided over half a million dollars to the Colombo Plan's Drug Advisory program over the past two years-US $300,000 in 1997 alone. IV. US Policy Initiatives and Programs
The US government works with Sri Lankan counternarcotics organizations in support of their efforts to promote awareness of the dangers of narcotics among the general population. In addition to providing occasional material and financial support, the US Embassy in Sri Lanka has actively participated in community awareness seminars. The US government hopes to advance self­sufficiency and cooperation among law enforcement and other government officials working on narcotics issues in Sri Lanka and the region. In terms of regional efforts, the US has provided over half a million dollars to the Colombo Plan's Drug Advisory program over the past two years-US $300,000 in 1997 alone.

Bilateral Cooperation. The US government­funded regional database on drug arrests, investigations, and other information for SAARC law enforcement agencies, which became fully operational in 1995, continued to be used with success throughout 1997. NDDCB officials were able to conduct their outreach, preventive education and training programs effectively in 1997 with the help of audio visual equipment provided by the US government in previous years. The participation of an Embassy officer at drug prevention seminars helped gain publicity for those events, including newspaper and television coverage. Bilateral Cooperation. The US government­funded regional database on drug arrests, investigations, and other information for SAARC law enforcement agencies, which became fully operational in 1995, continued to be used with success throughout 1997. NDDCB officials were able to conduct their outreach, preventive education and training programs effectively in 1997 with the help of audio visual equipment provided by the US government in previous years. The participation of an Embassy officer at drug prevention seminars helped gain publicity for those events, including newspaper and television coverage.