WB assures help to develop East

by Gamini Warushamana

Managing Director of the World Bank (WB), Graeme Wheeler reiterated that a political solution to the conflict is vital to achieve economic prosperity in Sri Lanka.

Addressing the media in Colombo after his brief visit Wheeler said, "Over the past two years, I have witnessed that the environment in which Sri Lanka must pursue its development is extremely challenging. As the WB has said previously, the conflict is a major obstacle to Sri Lanka to achieve its full potential.

Having reviewed the reconstruction of houses and livelihood improvement projects launched in Vavuniya, he said that the programs are being implemented in a manner that discrimination and gender inequality are minimum and communities and individuals are being empowered by the programs. However, there is yet much to be done in this respect, he said.

He assured that the WB will continue to assist in the efforts to reconstruct the East and other conflict affected areas. The Bank's programs will be carried out in a 'conflict sensitive' manner, whereby the causes and consequences of the conflict will be addressed.

The WB is currently working with the government on an assistance strategy for the next four years, he said. Wheeler said it is important to transform the East from a military to a civilian control province to ensure security to all communities.

I understand that many communities still feel insecure and hesitant to invest. The current situation in the East provides an opportunity to implement development activities in a manner in which the people are included and involved in the process, and the results on the ground are shared equally by all ethnic groups, he said. These characteristics should be incorporated in the Eastern Development plan of the government that is now being compiled.

He said that Sri Lanka has tremendous development opportunities, as the Asian region is likely to drive the global economic growth for many years. With sound economic management and strong trade and linkages, Sri Lanka will be positioned to take advantage of this dynamism. But there are major challenges. The inequality between the greater Colombo area and the rest of the country is increasing.

Sri Lanka's economic growth is slowing down and it needs to address the macro economic imbalance. The rate of inflation is approaching 20% and the government budget deficit and debt levels are too high, Wheeler said.