By Ranga Sirilal

COLOMBO, Nov 26 (Reuters) – Sri Lanka’s main opposition party said on Thursday it will back former army chief Sarath Fonseka’s bid in a presidential election, the most serious challenge to President Mahinda Rajapaksa’s re-election campaign.

Authorities issued orders easing security measures, including protection for dignitaries, for the first time since the defeat of the Tamil Tigers’ 25-year separatist insurgency in May.

Fonseka, widely credited for the army’s victory over the Tamil rebels, has yet to formally announce his candidacy for the election. Deputy Finance Minister Sarath Amunugama said in Singapore that the election would be held in late January.

“The UNP has taken a historic decision to endorse General Sarath Fonseka as its common candidate in the next presidential election,” United National Party Ranil Wickremesinghe told reporters.

The opposition will use the poll as a referendum on abolishing a powerful executive presidency, strengthening democracy, and resettling tens of thousands of people, mostly minority Tamils, displaced by the war, Wickremesinghe said.

SWING VOTE

Minority Tamil and Muslim parties forged an alliance this month with the UNP and are in discussions with Fonseka on his candidacy, mainly focusing on minority rights. The groups command a swing vote of up to 25 percent, with mainly Buddhist Sinhalese making up the majority in the country.

The government said on Saturday it would allow greater freedom of movement from Dec. 1 for refugees held in military-run camps, a move analysts said was aimed at winning the support of parties representing mainly Hindu Tamils. [ID:nCOL466455]

Fonseka stepped down last week as chief of defence staff after accusing Rajapaksa of unjustly sidelining him over unfounded coup fears.

He announced his intention this week to take part in politics when he petitioned the Supreme Court to provide him with increased security. [ID:nCOL480109]

The court is to rule on his request next week.

The government in turn issued directives reopening roads in Colombo long cordoned off by police and ordered a reduction in security for dignitaries, except for the president.

Fonseka currently has a 62-strong personal security detail and three escort vehicles. He asked the court to provide him 600 security personnel and at least 10 escort vehicles on grounds that remnants of the Tamil Tiger rebels threaten his life.

Analysts say Fonseka, who oversaw a 34-month offensive against the Tamil separatists, could split Rajapaksa’s voter base and win over voters relieved that the conflict is over.

Another key party, the Marxist Janatha Vimukthi Peremuna, which helped Rajapaksa win in 2005 with its effective campaigning and control over trade unions, has said it will support Fonseka in the election.

The Marxists backed Rajapaksa in 2005 after he promised to abolish the executive presidency and its vast powers once elected, although he has yet to do so.