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| Sunday, 29 May 2005 |
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Time factor critical issue for CEB - ADB by Rohan Mathes Asian Development Bank Country Director Alessandros Pio states in an exclusive interview to the Sunday Observer that the first tranche for the CEB restructure is due before June 30. If the CEB fails to submit a viable plan prior to this date, the ADB may not disburse the funds. However, discussions could still go ahead to receive the funds at a later date. "The time factor will be a critical issue for the CEB more than the ADB. If the Government comes up with a viable plan for the CEB, irrespective of its state-run or privatised status, we will help them out. We will not contribute to aggravate the CEB's debt burden. So we will have to wait and see", he said. In the Balance of Payments (BOP), Pio was optimistic that Sri Lanka would not have a major problem. Funds from debt relief, IMF loans and the IMF debt moratorium will be set aside to boost the foreign reserves which would also ease the pressure on the exchange rates. He urged the Government to re-look carefully at the possible fiscal implications of reconstruction. Although a major proportion of the funds were externally sourced, the Government will have to make provision to acquire land for the housing projects. He also cautioned the Government on unutilised funds for which Sri Lanka has to pay a commitment charge to keep the money available. Referring to the tsunami joint relief mechanism, he underscored the importance of all the stakeholders to the conflict, including the Tamil Tigers and the Muslim community participating and contributing to the planning and implementation of tsunami reconstruction, for a more effective and comprehensive process. "There are always alternatives. Nevertheless, we would like to encourage all parties. We would like to take the opportunity of the tsunami tragedy, to seek to develop ways which may lead to a positive outcome, in the context of a negative nature. Then confidence will build-up and the mechanism itself will become stronger", Pio noted. |
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