Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

by Lalin Fernandopulle

The European Investment Bank (EIB) signed an agreement on Thursday with the government of Sri Lanka to grant a credit facility of Euro 70 million (Rs. 8.4 billion) to support the industries and services affected by the tsunami.

The EIB loan will finance small and medium scale industries in the infrastructure, tourism, energy and telecommunication sectors.

The proposed facility will be financed in two tranches. The first will be EUR 50 million sponsored by the Central Bank of Sri Lanka (CBSL) through the Susahana subsidised loan scheme to assist the SMEs affected directly by the tsunami. The second breakdown amounting to EUR 20 million will be allocated for businesses affected by the catastrophe.

The European Union has been working hand in hand with the Government of Sri Lanka since the tsunami devastated the coastal belt in 2004. The EU has been extending its fullest support to Asia and other affected regions from the outset of the tragedy, said Director General of Directorate Outside Europe, Jean Louis Biancarelli.

The EIB will continue to support Sri Lanka in its efforts to revamp the industrial sector and infrastructure facilities. The tsunami was dehumanising and those affected continue to grieve over the loss. The concern of the EIB is to collaborate with the government in its rehabilitation and reconstruction efforts.

He said while the response by the international community to the catastrophe was applaudable, the challenge is to sustain economic growth providing employment to those who had lost as a result of the disaster. Taking the seriousness of the disaster into consideration the EIB volunteered to grant the credit line amounting to USD 85 million which will be channelled through eight intermediaries.

The Ministry of Finance will be dealing with the disbursements while the DFCC Bank will monitor the progress of the funding project.

Head of Delegation, European Commission-Sri Lanka and Maldives, Julian Wilson said while recognising that there could be misappropriation the EIB has commissioned DFCC Bank that has been operating an EIB loan since 2003 to play a key role in the monitoring task.

The EIB is committed to support the development of the economy of Sri Lanka for the next decade while strengthening the ties between the EU and Sri Lanka, he said.

| News | Business | Features | Editorial | Security |
| Politics | World | Letters | Sports | Obituaries | Junior Observer |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.