He said de-mining has been accomplished fast and ahead of predictions, and most displaced families were already resettled.
Over the last few years the government has spent 260 billion rupees to build roads, power distribution, water, health and irrigation facilities in the area, President Rajapaksa said at a ceremony to release the Central Bank's annual report on the economy.
In 2012 Sri Lanka's economy grew 8.
3 percent, the highest since independence from British rule.
President Rajapaksa said the international community expected a solution to the country's long-running ethnic problem and reconciliation in "24 hours" but it was not possible.
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Externally imposed solutions would also not be durable, he said.
Sri Lanka is under pressure from the international community and the United Nations to improve human rights and restore rule of law.