dominated north and east _ parts of which are under rebel control _ get a fair share of funds. The European Union welcomed the agreement, saying it would «greatly facilitate post-tsunami reconstruction in the northeast,» where most of Sri Lanka's 3.2 million Tamils live. «Co-operation ... will also help to build confidence between parties to the Sri Lankan peace process,» the EU said in a statement issued in Colombo. A 2002 Norway-brokered cease-fire halted the civil war between the Tigers and the government, which left nearly 65,000 people dead. Subsequent peace talks have been deadlocked over rebel demands for wide autonomy. The waves killed more than 31,000 people in Sri Lanka and made 1 million homeless.