Financial Times

Donors link aid to progress in peace talks
Major international donors have said they are ready to help rebuild conflict-affected areas but that future aid would depend on progress in the peace process.
"The international community pledged US$ 4.5 billion for development initiatives throughout the island at the Tokyo Conference on the Reconstruction and Development of Sri Lanka in June, 2003," they said in a joint statement.

"However, much of the future programmes will take into account progress made in the peace process as reiterated in the Tokyo declaration on the reconstruction and development of Sri Lanka." They said Sri Lanka has enjoyed an unprecedented period of peace since the government and the Liberation Tigers of Tamil Eelam (LTTE) agreed on a permanent cease-fire in February, 2002.

"This has been the longest cease-fire to hold in two decades and has re-opened the space for a political settlement.," they said. "The cessation of hostilities led to increased levels of economic growth in the country and facilitated the revival of commercial activity in the North-East.

"The international development community, in turn, demonstrated its support to the peace process with significant financial commitments." The World Bank, the Asian Development Bank, UNHCR, UNICEF, UNDP, the World Food Program, the European Commission, Australia, France, Germany, Italy, Japan, Netherlands, Sweden, the United Kingdom and the United States have committed a total of US$ 649 million to the North-East to date.

"The donor community stands ready to support reconstruction and recovery in the conflict-affected areas," the donors said in the joint statement. It said 311,000 refugees have returned to their homes since the cease-fire, representing 40 percent of the internally displaced population registered in January, 2002 and over 50 percent of the IDPs who had indicated a willingness to return to their homes in a joint Government-UNHCR survey conducted in mid-2002.

The extent of land under paddy cultivation in the north increased by 35 percent.
Provincial statistics indicate that paddy production in the North-East increased five-fold from 84,000 metric tonnes in 2000 to 400,000 metric tonnes in December 2002/January 2003. The total fish catch in the North-East almost doubled from 44,000 MT in 2000 to 85,000 MT in 2002.

The donors said 20,000 school drop-outs have returned to school in the North-East and 35,000 children in the region now have tables and chairs in their class rooms.
"Catch up education is provided in all eight districts," they said. The statement said 55 schools and 25 health facilities have been reconstructed using donor funds and another 93 schools, 90 health care centers and 75 office buildings in the North-East have been identified for repair in 2004 using US$ 12 million of international resources.

It said 45 kilometers of the A-9 highway have been rehabilitated and work on the remaining 50 kilometers almost complete. "International donors also provide significant levels of assistance to the south of Sri Lanka where levels of poverty exceed the national average," the statement said.

"The donor community remains committed to the development of the south evidence of which came to the fore at the recent floods disaster in May 2003. Several agencies have supported education, health care and community water initiatives in the south."

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