He who lives by the sword, dies by it. Prabhakaran had a chance to settle for a good deal, but he got too enamoured by blood lust. The only long term solution for the Tamil-Sinhalese issue is to look at their ethnicities: the Tamils are Dravidians with ties to Tamil Nadu and other south indian dravidian states, while the Sinhalese are related to the Biharis and northern Indians. The only sensible solution is for Sri Lanka to join the Indian federation and ask for more devolution of power to the states, so that the Sinhalese state would be the south and west of the island of Ceylon and the Tamil State would include the north and east of the island + the current state of Tamil Nadu. This will meet both ethnic needs and economic needs.
Meanwhile Prachanda's Naxalite brothers continue to murder scores of innocent Indians monthly. Just don't try to kill a Ghandi, right?