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| Sunday, 22 May 2005 |
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Development Forum pledges exceed govt's expectations The Sri Lanka Development Forum was held in Kandy from May 15-17. It was the first forum to be held in Sri Lanka and more than 120 foreign delegates participated. At the end of Sri Lanka Development Forum last week international donors pledged more than US$ 3 billion in the form of grants, moratoria on debts, and development-related work spearheaded by the government. According to Finance Minister Dr. Sarath Amunugama, 95 percent of the assistance promised at the Forum was outright grants and there were no loans, which mean no repayments or preconditions for upcoming disbursements. The donor community represented 45 countries, bilateral and multilateral donor agencies and NGOs. They were happy with the presentation of the Sri Lankan government's comprehensive reconstruction plan and with the expectation of putting the country back on track after the 20-year war and last year's tsunami disaster, pledged assistance for development projects. Minister Amunugama said that the amount promised at the Development Forum exceeded the government's expectations. "We will receive US$ 450 million (China US$ 350 million and Japan US$ 100 million) and the total pledges of US$ 3 billion included the debt moratorium by Paris Club Members and Non-Paris Club Members, which went up to US$ 300 million," he said. The Indian government had acceded to a three-year debt moratorium on US$ 300 million, the IMF has also confirmed, providing US$ 250 million to maintain the balance of payments, the Minister said. The donor meeting pledged to give aid without any preconditions. At the 2003 Tokyo donor conference there was only a promise with several conditions that the Sri Lankan government was bound by Re-gaining Sri Lanka Policy document that was highly controversial. World Bank Country Director Peter Harrold said that the donor community was very much impressed by the presentations of the Matara, Mullaitivu, and Trincomalee Government Agents regarding post-tsunami reconstruction work. Dr. Amunugama also launched the Sri Lanka Millennium Development Goals Report at the end of the Forum's third session. Sri Lanka's foreign aid disbursement rate is below 25 %. According to WB, government as well as donor community is responsible for this. The inefficient government sector is a major reason for the low aid disbursement and hence the donor agencies have proposed restructuring the government service. The WB has also accused that some projects have been regarded as donor projects and not government projects by officials. (GW) |
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