Virtually rebuffing LTTE for declaring intentions to resume all-out armed campaign, India on Wednesday emphasised the need for finding a negotiated settlement to Sri Lanka's problems.

The view was underlined when Prime Minister Manmohan Singh met Sri Lankan President Mahinda Rajapakse and held a detailed discussion on the peace process in the island nation amid concerns over the deteriorating humanitarian situation in LTTE-held Jaffna peninsula.

The Indian side conveyed that there needs to be a 'negotiated settlement that is acceptable to all sections of Sri Lankan society', External Affairs Ministry spokesman Navtej Sarna told reporters.

New Delhi's assertion can be seen as a rebuff to LTTE whose chief V Prabhakaran two days ago threatened to resume violent struggle for a separate Tamil state.

During the hour-long meeting, Rajapakse explained the steps being taken by his government to evolve a devolution package that could serve as a political settlement of the country's problems, Sarna said.

India has stressed on seeing 'early progress' in the peace process so that all ethnic communities in Sri Lanka can live harmoniously and are able to achieve their aspirations.

Rajapakse is understood to have urged the Indian government to step up patrolling of its maritime borders to help prevent influx of arms for LTTE.

The two sides are also believed to be working out modalities for sending food items, like sugar, to Jaffna from Tamil Nadu.