The PSNI informed the relatives of victims that it had suspended its investigation until more evidence comes to light.
Stewart Dickson MLA said: “This move by the PSNI shows the important role members of the public play in passing on information relating to on-going investigations.
“The Claudy bomb led to a devastating loss of life, with the affects still being felt by many today.
“There are those that hold information about this horrific bombing and now is the time to come forward. Anyone with even a scrap of information should contact the PSNI as soon as possible.”