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Sri Lanka

Warm welcome for Sri Lankas donors

Kandy, the hill capital of Sri Lanka, is all set to host the Sri Lanka Development Forum 2005, the first donor conference to be held in Sri Lanka that will focus on post tsunami recovery process and piloting the country towards economic prosperity through new development strategies.

More than 150 representatives from over 50 countries and international donor agencies including Ambassadors and other dignitaries will participate at this mega event which is to be inaugurated at Earls Regency Hotel by President Chandrika Bandaranaike Kumaratunga at 9.30 am today.

The earlier Donor Conference was held in Tokyo, Japan in 2003.

Security in the hill capital was tightened with more than 1000 policemen deployed for duty, DIG Central Range Nimal Mediwaka said. The flow of vehicular traffic to the city too will be restricted in view of the inauguration ceremonies.

Police issued strict instructions not to allow any vehicles to park along Kandy streets and also advised vehicle owners to bypass the city for their own convenience during the next two days.

Representatives from donor countries and agencies started arriving at the Mahaweli Reach Hotel which is one of the two venues where the conference is scheduled to be held in Kandy.

According to Finance Minister Dr. Sarath Amunugama, the Government aims to secure US $ one billion from donor countries to bridge the budget deficit which now stands at 9.5 per cent of the Gross Domestic Product (GDP) of the country.

According to sources, the Government aims to cut down the budget deficit by two per cent and to maintain it at 7.5 per cent against the GDP as targeted in the budget proposals for 2005 with the assistance from donor countries and agencies.

Donor countries' help is also sought for the country to maintain 80 per cent economic growth rate for the next 10 years for the country to reach economic prosperity through greater reduction in poverty level and unemployment.

Sri Lanka maintains a 5.6 per cent economic growth rate despite even in the midst of its largest ever disaster.

According to Finance Ministry sources the main theme of this Forum would be the post-tsunami recovery and reconstruction process.

The Forum provides an excellent opportunity for Sri Lankan authorities to put forward their argument as to why donor countries should assist Sri Lanka in its tsunami recovery process.

A large number of Ministers and officials dealing with the tsunami recovery process will be able to make their presentation about their experience before the donor community.

Government Agents from tsunami affected districts have also been provided the opportunity to present their experience during the sessions.

Earlier, this chance was restricted only to a handful since conferences were held in foreign countries.

A number of Ministers including Finance Minister Dr. Sarath Amunugama, Healthcare and Uva Wellassa Development Minister Nimal Siripala de Silva and Tourism, Industry and Investment Promotions Minister Anura Bandaranaike are scheduled to chair session on Post Tsunami Recovery process to be held at the Mahaweli Reach Hotel on the first date of the conference.

The first day sessions will be dedicated for the Tsunami Recovery process. Mano Tittawella Chairman Task Force for Rebuilding the Nation is scheduled to present the Needs Assessment and Reconstruction Strategy in the Tsunami Recovery process to the donor community.

According to sources, only US $ 750 million is available with the Government for the tsunami reconstruction process despite Government being pledged US $ 2 billion by the donor community by the end of March this year.

Dr. Amunugama is scheduled to launch Sri Lanka Millennium Development Goals at the second day's session which will focus on Economic Policy and Development Challenges.

Analysts say that the proposed Joint Mechanism with the LTTE will be a major issue during the sessions. However, donor agencies and donor countries have given indications that the Joint Mechanism will not be made a pre-condition to pledge assistance to Sri Lanka in the post tsunami recovery process.

However, donor countries have expressed views that they will be happy if there is a joint mechanism between the Government and the LTTE with regard to the post tsunami reconstruction in the North and East.

President Chandrika Bandaranaike Kumaratunga has expressed her full commitment towards the establishment of a Joint Mechanism to deal with this situation despite opposition from some quarters within the UPFA Government.

The donor community pledged US $ 4.5 billion assistance to Sri Lanka for over a four year period at the Tokyo donor conference -2003 putting forward the progress of the peace process as a pre-condition for their assistance. Japanese Special Envoy to Sri Lanka Yasushi Akashi who played a major role at the Tokyo donor conference is also scheduled to participate at this donor conference.