Abstract
Donors that provide aid to the Wanni region of Sri Lanka, which is controlled by the Liberation Tigers of Tamil Eelam (LTTE), are promoting initiatives that seek to advance the national peace process. Under the rubric of post-conflict reconstruction, the actions of political forces and structural factors have led to the prioritisation of two different approaches to peace-building: community capacity-building projects; and support for the 'peace dividend'. Both of these approaches face challenges. Cooperation with civil society actors is extremely difficult due to intimidation by the LTTE political authority and the authoritarian nature of its control. Peace-building successes with respect to the peace dividend are difficult to measure, and must be balanced against the negative effects of misdirected funds. Aid organisations must be careful not to consider the tasks of peacebuilding, humanitarian relief and community empowerment as either interchangeable or as mutually reinforcing endeavours.

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