"The LTTE (Liberation Tigers of Tamil Eelam) is going on the basis they want talks in Oslo because that was the venue suggested by the 'co-chairs'," a diplomat close to the peace effort said.
"The government's preference is Geneva. This is the challenge for the peace envoy," the diplomat said.
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Sri Lanka's key financial backers or 'co-chairs' -- the US, the European Union, Japan and Norway -- last month called on the two parties to open talks in early October and be ready for a progress review by the end of the month or risk losing support.
The quartet also asked the two sides to enter talks in Oslo and not to quibble over details.
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But nationalist allies of the Sri Lankan government had opposed holding talks in Oslo.
They argue that Norway was biased towards the Tigers, a charge denied by Norwegian diplomats.
Sri Lanka's top official coordinating with Norway, Palitha Kohona, said Colombo was willing to start talks on October 28 at any venue in Switzerland.
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"The Norwegians wil