Goonetilleke made this comment while giving evidence before the Lessons Learnt and Reconciliation Commission when it commenced sittings for the first time this morning.
The government-appointed Commission called the former Ambassador to the United States as its first witness when it opened its first hearings at the Kadirgamar International Relations and Strategic Institute in Colombo today.
The panel has been asked to report to President Mahinda Rajapaksa within six months on why a truce agreement signed in 2002 broke down and to suggest ways to ensure the island will not revert to conflict.
A group of 57 United States congressmen yesterday urged the Obama administration to conduct and independent investigation into the alleged war crimes in Sri Lanka during the last stages of the war.
In a letter to Secretary of State Hilary Clinton, the lawmakers said the government-appointed panel lack credibility.
According to Goonetilleke, pro-LTTE elements were collecting funds claiming that Tiger leader Velupillai Prabhakaran was still alive. These elements are said to be collecting funds using documents with Prabhakaran's signature.
LTTE leader Prabhakaran was killed during the final stages of the war in May last year.
Referring to the Tamil Diaspora, Goonetilleke said that the Diaspora desired the continuation of the war and helped towards this end since they feared they would lose the privileges being enjoyed in the Western countries.
He suggested the government to engage with the Diaspora and convince them about the changed situation in Sri Lanka but warned that there are still a minority of hardcore elements that still support the separation.
Commenting on the issues of resettlement and the devolution Goonetilleke said the people should be allowed to resettle in their original habitat and the presence of armed forces should be limited without instilling fears in the minds of the people.
The Commission is to continue hearings till August 25.
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