According to the annual U.S State Department country reports on terrorism for 2011 the LTTE will remain listed as a foreign terrorist organization.
The report said that although the LTTE was militarily defeated in 2009 its financial network of support continued to operate throughout 2011.
The Government of Sri Lanka remained concerned that the LTTEâ€™s international network of financial support still functions; most counterterrorism activities undertaken by the government targetted possible LTTE finances, the report said.
It said that the the possible resurgence of domestic militant Tamil groups is not an immediate concern, but efforts were underway to address possible growing Tamil radicalism in the north and east.
The Sri Lankan government has used the fear of the possible re-emergence of the LTTE to maintain a strong military presence and role in the post-conflict areas, although the militaryâ€™s continued heavy presence in the north feeds Tamil resentment, the report added.