The six-member team told reporters here that it would also strongly recommend to British deputy foreign secretary Derick Fachet, scheduled to visit Sri Lanka next week, to revive the last year's British peace initiative which failed to take off.

``Third party mediation would be helpful in bringing parties together... It is for the Sri Lankan government and the people to decide whether to opt for third party involvement or not,'' they said, citing the success of the Northern Ireland peace process due to American initiative.

The parliamentarians, ending their week-long tour during which they held discussions with top leaders, said Sri Lankan leaders had recognised that it was a ``no win'' situation.

``The LTTE too sees Eelam as no problem andthe negotiated settlement is the only way out,'' they added.

Conservative MP Michael Morice said ``the starting point for the negotiations was to get along side of V Prabhakran (LTTE chief) and tell him that Eelam was not possible and he knows it in his heart and convince all parties the need for a negotiated settlement.''