It’s true that Gen Sarath Fonseka has been offered a post at the Sports Ministry, as the secretary. He doesn’t seem to have accepted it yet and a lot of regular Sri Lankans (along with Sarath Fonseka himself if some reports are to be believed) seem to consider it an insult to his stature.
Taking the man who played such an important role in winning the war and placing him in such a harmless, out of the way position is a Machiavellian tactic to remove his powerful influence from the public sphere. The government appears to be pretty clear on whom it wants its heroes to be.
A presidential election probably won’t take place in the immediate future. Mr. Rajapakshe will probably wait ’til his first term ends. Since he will want to milk as many years being the top dog as he possibly can. The last thing he needs is an iconic army general gaining political momentum over the next two years to pose a significant challenge to his presidency.
This could also be a part of a longer term strategy to eventually only associate the Rajapakshe name with the winning of the war; a powerful propaganda tool for an emerging political dynasty.