The Sri Lanka government has formally ended its ceasefire agreement signed in 2002 with the Liberation Tigers of Tamil Eelam (LTTE). It only regularises an existing state of war that had been going on since December 2005. It is a sad development because it shuts the door on the peace process sponsored by the Tokyo Donors Conference. While the four co-chairs of the Tokyo Conference — the EU, Japan, Norway and the US, can walk out of the peace process, India as a close strategic neighbour of Sri Lanka, India cannot afford to ignore the development. It will also face the fall out of yet another round of full scale war in Sri Lanka in some ways, because India-Sri Lanka relations have become closer than ever before.