The IRA does not present a terrorist threat or a threat to security forces, according to the latest Independent Monitoring Commission (IMC) report.
The ninth IMC report, which deals with the programme of security normalisation published by the British government last year, restates the commission's belief that the IRA "has taken a strategic decision to follow a political path".
The commission said that the organisation had instructed its members not to engage in public disorder and added that any illegal activity engaged in by the organisation or its members could now be effectively handled by the PSNI without any need for military assistance.
But the report warned that dissident republicans continued to represent a significant threat to the security forces and the public. It said that dissidents' capacity to mount "a sustained campaign" was limited but that they were "prepared to resort to extreme violence".
It pointed out that none of the loyalist groups have taken political decisions similar to that of the IRA but said that it did not consider these groups a significant threat to the security forces.
They were, however, heavily involved in the drugs trade and other forms of organised crime, it added.
The report found that the British government had fulfilled its commitments under the security normalisation programme but noted that the authorities continued to take account of the security threat.
Measures undertaken as part of the normalisation process have so far included a reduction in the number of troops by nearly 900 to just over 9,200; the withdrawal of the army from five of the 10 joint PSNI/army bases; the closure of Forkhill Army Base, and the removal or demolition of a number of towers and observation posts.
Minister for Justice Michael McDowell welcomed the British government's progress on normalisation and said that it demonstrated both governments' commitment to advancing the peace process in "unequivocal fashion".
The provisional movement should respond by fully engaging with policing structures in the North, he added.
Northern Ireland Secretary Peter Hain also welcomed the progress on normalisation but said he would not hesitate to act if the security situation changed for the worse.
The Taoiseach Bertie Ahern and the British prime minister Tony Blair are meeting in Downing Street today to review their plan for reviving devolution.