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| Sunday, 17 November 2002 |
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| News Business Features Editorial
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ADB loans to develop aquatic resources, plantations The Government of Sri Lanka and the Asian Development Bank (ADB) signed two agreements recently to develop aquatic resources and plantations in the country. The agreements were signed by Charitha Ratwatte, Secretary to the Treasury and John R. Cooney, Country Director, ADB Resident Mission in Colombo. The project to develop aquatic resources, particularly the inland aquaculture sub-sector, will cost US30 million, of which the ADB will provide US$20 million. The Government and the private sector will finance the remainder. The project will enhance food security and reduce poverty, especially in rural areas, by developing model aquaculture and fish processing enterprises that can be easily replicated by community-based organisations and by private entrepreneurs in other parts of the country. The main components of the project are inland fisheries and aquaculture development, fish quality improvement and marketing, facilitation of access to credit and institutional strengthening. The project will increase production of freshwater fish and other aquatic products; improve the quality and increase consumption of inland fish; improve access to credit; and strengthen the capacity of the National Aquaculture Development Authority and other sector institutions. Investments by small - and medium - scale private entrepreneurs will be promoted and community-based fisheries management will be strengthened. It will initially be implemented in nine districts in six provinces primarily in the dry zone: Anuradhapura and Polonnaruwa in North Central Province; Kurunegala and Puttalam in North Western Province; Nuwara Eliya in Central Province; Ratnapura in Sabaragamuwa Province; Badulla and Moneragala in Uva Province, and Hambantota in Southern Province. Sites have also been identified in other districts, including Amparai, Batticaloa and Vavuniya in the North and East, since the climate for development activities in these areas has now improved. The Ministry of Fisheries and Ocean Resources will be executing agency while the National Aquaculture Development Authority is the main implementing agency of the Government. The private sector, non-governmental organisations, and community-based organisations will also engage in implementing the project. The US$30 million loan for a plantation development project is aimed at boosting productivity of the tea sector and improving living and working conditions for about 265,000 plantation workers. The objective of this project is to make the plantation sector more profitable and self-sustainable through improved productivity, diversification, and marketing initiatives. It will establish a plantation fund to invest in equity and quasi-equity instruments as an alternative to collateral-based lending. The project also supports ongoing policy reforms of the Government in management of the plantations through regional plantation companies. The project will assist with replanting and infilling of tea, rubber, oil palm and forest plantations. It will also uplift living and working conditions for plantation workers, by providing housing loans, rehabilitating workers' homes, and providing welfare facilities and amenities in the workplace. Training in technical areas and life skills will be offered to workers as well. The project will address issues such as high production costs and low profitability in operating plantations. Assistance will also be provided to elevate the sector from its current position of trading primary commodities, to improve its output and profit base through diversification and value-addition. The Ministry of Plantation Industries will be the executing agency for this project. The DFCC Bank will act as the apex body for the credit line and for the workers' housing loan scheme. |
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