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Government is receiving financial assistance worth millions of Dollars from donor agencies and foreign financial sources. President Chandrika Bandaranaike Kumaratunga last week authorised Dr. P. B. Jayasundara, secretary of the Ministry of Finance to sign some of these loan agreements on behalf of the Government. President Kumaratunga has given this special authorization under section 2(a) of the Foreign Loans Act No.29 of 1957 amended in 1962, 1963 and 1980.

A loan of US$ 75 million has been provided by the International Development Agency of the World Bank for the implementation of the North-East housing reconstruction programme. It is expected that 46,000 houses will be constructed for poor conflict- affected families in the North and Eastern provinces.

The Asian Development Bank (ADB) has provided another US$ 60 million from its Ordinary Capital Resources. ADB has also provided SDR 3,318,000 from its Special Funds Resources. This loan facility will be used for the implementation of the financial market program for private sector development. This program will be implemented with the ADB.

Government has entered into a loan agreement with Citicorp International Limited, Citibank International Plc and Export Finance & Insurance Corporation worth Australian Dollars 18,303,063 under export finance facility. Another agreement was signed with the Citibank- Colombo worth Australian Dollars 2,786,937 from the bank's commercial finance facility.

These two loans will be used for "Sustainable Water Assistance Management Project". The ADB is also assisting the Fiscal Management Reform Program that has been initiated. ADB has provided US$ 60 million from its ordinary capital resources under two loan agreements.

The ADB has provided another SDR 6,672,000 from the Bank's Special Fund Resources for this purpose. Meanwhile the Royal Norwegian government has come forward to ease Sri Lanka's debt burden. A Norwegian Kroner seven million (US$ 1.13 million) grant has been provided to help Sri Lanka service its debt to the World Bank.

The grant has been provided to a Trust Fund to be administrated by the WB. This grant has contributed some Rs.120 million additional revenue for the budget.

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