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Donors agree: Aid now not tied to talks
By Faizal Samath
Foreign donors, reviewing the country's stalled peace process and political instability, believe the disbursement of donor funds should not strictly be tied to progress in the peace talks, informed sources said.

In a shift from the earlier position of disbursements being linked to progress in government-LTTE negotiations, representatives of donor countries and international lending agencies at a meeting on Friday showed a strong desire to consider progress - and thus disburse funds - in the context of the ongoing ceasefire, continuing de-mining operations and other developments.

"While there was concern over the political situation, donors showed some flexibility against their earlier approach and now say that the aid flow should be based on any kind of progress - not necessarily negotiations," said a foreign diplomat, who declined to be named.

At Friday's meeting chaired by Japanese peace envoy Yasushi Akashi in Colombo, donors looked at the wider picture of the peace process and some positive aspects. The LTTE boycotted the meeting despite an invitation to attend.

While expressing concern over peace talks not being held since April due to a variety of reasons, donors considered other core issues like the continued ceasefire, no-ceasefire violations, de-mining activities being continued, humanitarian aid going in and some resettlement taking place.

"The aid tap is not going to be turned off, if there is progress in other areas," the diplomat assured, hinting that donors were showing some flexibility as against earlier stated positions of linking aid to talks. Other sources said the changing attitude was also based on the fact that the political clash between the two leaders would take longer to resolve than earlier anticipated.

Part of the $4.5 billion aid pledged at the Tokyo meeting in the form of grants and loans has already been disbursed with Sri Lanka receiving $1 billion last year. Contrary to statements by Cabinet spokesman G.L. Peiris and other ministers that aid has been jeopardised by the political crisis, the IMF and the World Bank have repeatedly said aid flows are continuing. However, donor agencies acknowledge that aid flows would improve if there is political stability and a resumption in peace talks. This year too, $1 billion worth of aid is expected to be disbursed.

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