Srilanka got Indian support to defeat LTTE with the clear understanding that they would devolve some form of autonomy to Tamil areas. They need to understand that if they do not act and build consensus on this issue ( in their own interest) , UN report will be used by tamil politicians to again raise issue and garner support for another movement.
Be wise......use the opportunity to kill the issue , once and for all......................there will not be a second time again you see.
You see the issue is not as simple and easy, but with defeat of LTTE, current Srilankan govt has uper-hand.
In case they go back on their words, they will find :-
1) EU & other western countries will continue opposing at every forum.
2) Indian Tamils will build pressure on Indian Govt to intervene in Srilankan matters, whether the Govt will do or not is a separate matter, but for public consumption, will keep on sending bureaucrats to Srilanka.
Coming on to the way the defeat of LTTE was acheived, world is stunned that even followers of Buddha can beat Hitler and company.
And yes, China can do nothing in the matter if India decides to intervene.
