OCHA Situation Report Humanitarian Situation Report
Sri Lanka
13 - 19 May 2005


Source: UN Office for the Coordination of Humanitarian Affairs

Overall Situation

The Development Forum meeting was held in Kandy on 16 to 17 May and
focused on post tsunami relief and reconstruction, macro-economic policy
of the Government of Sri Lanka and partnership in the peace process. The
MDG 2005 Report for Sri Lanka was launched at the meeting. Three key
issues dominated the statements of donors and and UN agencies: the
importance of coordination, the need for a smooth and effective
transition from relief to recovery and concern over the lack of progress
in the peace process -- particularly regarding the need for a joint
mechanism for relief and recovery efforts in the North and East.

In addition, the need for increased transparency and accountability was
acknowledged and supported by all participants. Documents related to the
Development Forum are available on the HIC website at
 and a media monitoring of coverage
of the Development Forum is attached to the end of this sitrep.

OCHA has produced the first of what will be a monthly print newsletter,
"Post-Tsunami Update," that reports on United Nations activities in
support of the relief and recovery efforts of the Sri Lankan government
and its people. The newsletter is also available electronically through
the website of the Humanitarian Information Centre (HIC) at the address:
www.humanitarianinfo.org/srilanka/mediacentre/press/docs/PostTsunamiUpdate.pdf


Water and sanitation

UNHCR and the Ministry of Relief, Rehabilitation and Reconciliation
(MRRR) are signing on 20 May an agreement that ensures vital water
supplies to residents of three villages in Mannar. Over 1,000 families
in Thevanpiddy, Vellankulam and Moonampiddy will benefit from the
construction of a 10.3 km-long water pipe along the coastal belt of
Manthai West DS division, providing better access to safe drinking
water, improvements in hygiene, and new livelihood opportunities for the
local population. The project is being implemented by the National Water
Supply and Drainage Board (NWS & DB) Trincomalee, with supervision by
the MRRR through the Northeast Community Restoration and Development
Project (NECORD).  Upon completion, UNICEF will connect the pipeline to
schools and health centres, while UNDP will further extend the pipeline
to two other villages.

The project, funded by the Government of Denmark through the Danish
Development Co-operation Office (DANIDA) at a cost of Rs.25.9 million,
seeks to address the poor availability of water to the three villages,
which currently rely on water bowsers or a well in Paliaru, that has
gradually increased in salinity.  By supplying water directly to
beneficiaries the scheme reduces the burden of water collection,
improving their standard of living. Through the building of the new
pipeline and supplying beneficiaries with immediate access to potable
water, the scheme supports efforts to establish conditions that allow
internally displaced persons (IDPs) to return voluntarily to their
homes, a key requirement of UNHCR's Guiding Principles on Internal
Displacement (GPID).

Communities and camps in Batticaloa are now receiving between 12 to 16
litres of water/per person/per day. This meets WHO standards for
emergency situations. UNICEF plans to further increase supply to 25
l/p/d. A water treatment plant (with the capacity of purifying 20,000
litres per day) has been installed at the UNICEF-constructed water
source in Kattankudy by the Italian Red Cross. UNICEF has supplied a
diesel pump to Italian Red Cross for use at the plant.

In Ampara district, UNICEF is progressing in the construction of water
and sanitation facilities that complement UNHCR transitional shelters.
Thirty-eight units are being constructed with over 75 toilets, urinals
and bathroom facilities. Cleaning of wells in the Ampara district has
also progressed with 5,000 wells now completed. A further 2,000 will be
cleaned in coming weeks

In Jaffna, the progress on shelter construction has been significant.
Out of a planned 3,087 shelters, 2,705 have been completed and
construction of a further 382 is in progress. An estimated 2,660
families have moved into these shelters. Safe drinking water is supplied
on continual basis to the 72 water tanks available in these shelters
with a total capacity of 79,000 litres.

Health

Some 12,400 mosquito nets, which were handed over by UNICEF to the
Deputy Director of Health Services in Batticaloa district, are being
distributed to families in the malaria prevalent areas of the district.
An increase in Mosquito-borne diseases is likely due to the seasonal
North East monsoon rains.

A one day vitamin A supplementation campaign conducted on 30 April 2005
was successfully carried out in nine tsunami-affected districts. The
campaign targeted over 450,000 children between 6 months and 5 years of
age. Reports received to date show very high coverage. In Jaffna
district the coverage was reported to be 94.9 per cent, in Trincomalee
coverage was reported at 94 per cent and Ampara reported 97 per cent. A
similar report is expected to come from the remaining districts. UNICEF
zone and country office staff conducted monitoring visits on 30 April to
health clinics and mobile clinics near IDP camps. NGO's were also
mobilized to assist with monitoring.

Non-food items and shelter

A two-day meeting was recently held in Galle by INFORM and the National
Human Rights Commission to raise awareness and discuss issues arising
from the land policy and resettlement programmes of the government. The
aim was to highlight some of the government actions, to hear input and
the experiences of the tsunami affected population through a public
forum, and to engage in preparing joint future plans. Key participants
of the meeting were Lionel Fernando, the Director of Disaster Unit;
National Human Rights Commission, the Government Agent of Galle and
other relevant officials including the Deputy Inspector General and
Senior Superintendent of Police Officers from Matara and Hambantota,
Secretaries and GNs of relevant divisions, representatives from I/NGO's
operational in the districts of Galle, Matara, and Hambantota, and
tsunami-affected population and their representatives.

According to Save the Children in Sri Lanka, the general situation
appears to be continuing to improve in the Northern Province, with 99
per cent of transitional shelters at Transit camps in Mullaitivu now
being occupied, and about 85 per cent in Vadamarachchi East. In
addition, transitional shelters are now going to be built for those
living under canvas who were not included in the original numbers of
shelters to be built, but who were directly affected by the tsunami.

Protection

The issue of children's land rights is now being increasingly
highlighted by child protection actors. Many of the children registered
as having lost parents are entitled to land as inheritance in the buffer
zone. There is the issue of ensuring that they receive their
entitlements, and ascertaining that guardians do not abuse this right.
UNICEF Batticaloa agreed to raise this issue with headquarters and
perhaps look at implications for programming. Additionally, UNICEF
agreed to work with Probation and ESCO to conduct a study on the numbers
of children who might be affected.

UNICEF Batticaloa provided seven bicycles for each of the seven Women
and Children's Police Desks in Batticaloa. These bicycles will assist
officers to be more mobile and improve follow-up and response to cases
of abuse. The Women and Children's Police Desks also organized a meeting
initiated by UNICEF and CARE on the Campaign against Domestic Violence.
Participants agreed to a month-long campaign, with a focus on the
importance of family unity, as well as to stress positive messages. It
was also agreed that the Campaign should support the Women's Committee
for Disaster Management initiative to support camp and village level
Action Groups to prevent violence.

Sri Lanka Local Media Monitoring of the Development Forum

World Bank deputy leader confers with the President on common mechanism

Praful Patel the deputy leader of the World Bank had discussions with
the President on the common mechanism for an hour yesterday at Kandy.
The President took the opportunity to inform the deputy leader that the
government is bent on forming the common structure. (Thinakkural, 18 May
2005)

Rs.300 billion promised at Kandy conference with conditions

The donor countries have promised an additional Rs.80 billion as aid
with the condition that the peace process and the common structure be
started immediately. The money would be released according to the
fulfillment of the conditions laid down by the donor countries.
(Thinakkural, 18 May 2005)

Donor countries stress on cease-fire and peace talks

Many of the representatives who spoke on the second day of the Kandy
conference expressed the view that the peace talks must start once again
and that the cease fire agreement must be observed and not broken. They
said that the EU would support the President if there is a danger to her
life as she fears. The countries that want development in the country
want the peace talks to commence soon. (Sudar Oli, 18 May 2005)

Rs.300 billions promised at the Kandy conference

The donor countries have promised more money than what we requested said
the minister of finance. He further says that 95 per cent of the aid
need not be repaid. If the peace process is not taken forward the
promised money may not find its way. But unlike the Japanese conference
this money would be received he predicted. (Sudar Oli, 18 May 2005)

Donor pledges top US$ 3 billion development forum a thumping success

The first ever development forum chaired by the Sri Lankan government
wound up yesterday in the historic city of Kandy, with the international
donor community making commitments and pledges exceeding US $ 3 billion
in the form of grants and moratorium on debts in view of the tsunami
reconstruction process and for other development programmes initiated by
the government, Finance Minister Dr. Sarath Amunugama announced. (Daily
news, 18 May 2005)

Warm welcome for Sri Lanka's donors

Kandy, the hill capital of Sri Lanka, is all set to host the Sri Lanka
development forum 2005, the first donor conference to be held in Sri
Lanka that will focus on the post tsunami recovery process and piloting
the country towards economic prosperity through new development
strategies. More than 150 representatives from over 50 countries and
international donor agencies including ambassadors and other dignitaries
will participate at this mega event which is to be inaugurated at the
Earls Regency Hotel by President Chandrika Bandaranaike Kumaratunga at
9.30 am today. The earlier donor conference was held in Tokyo, Japan in
2003. (Daily news, 16 May 2005, pg. 1)

Private sector wants right policy, quick action than more aid

As Sri Lanka kicks off a historic two-day development forum in Kandy
today the private sector is urging the government as well as its donors
policies and quick action than more aid. The appeal comes even though
the donor forum is no longer an annual review of the country's
performance, proposed programmes and projects and commitment of aid as
in the past. As the title suggests, the event is more development and
policy oriented as opposed to the famous Paris Aid Group meetings of the
past. Private sector sources said that more than aid Sri Lanka was
seriously lacking the right and consistent policies and worse even if
there are correct policies there is inexplicable delays in
implementation or ad-hoc changes. (Daily Mirror financial times, 16 May
2005, pg. 1)

Aid group meets amidst political uncertainties

The crucial Sri Lanka development forum 2005, which focuses mainly on
tsunami reconstruction and poverty eradication will begin in Kandy
today. The government will be looking forward to ensure that the large
sums of monetary assistance pledged by donors are converted into
commitments for disbursement as tsunami relief assistance.

President Chandrika Kumaratunga will inaugurate the forum with
representatives of over fifty countries and international donors
expected to participate. Government officials, representatives of the
private sector including trade chambers, trade unions, non-governmental
organizations and civil society are also invited to participate. (Daily
Mirror, 16 May 2005, pg. 1)

Sri Lanka receives record US$ 2.2 billion grants from donors

The government recorded an unprecedented response from the donor
community yesterday for its post-tsunami reconstruction plan. On the
first day of the Sri Lanka development forum held in Kandy with donors
making commitments worth US$ 2.2 billion yesterday, finance minister Dr.
Sarath Amunugama announced last evening here in Kandy. Addressing the
media at the conclusion of the first day's sessions of the development
forum, which focused on post tsunami reconstruction plans, Dr. Amunugama
said the commitments by the donors topped the entire tsunami
reconstruction requirements presented by the government at yesterday's
sessions. (Daily News, 17 May 2005, pg. 1)

Government hopeful of forming Joint Mechanism - president

The president yesterday asserted that the government would be able to
move forward with the Joint Mechanism as a majority of the government
and the population was supportive of the move. Addressing the donor
community at the inaugural sessions of the Sri Lanka development forum,
President Kumaratunga expressed the hope that the government would be
able to move forward towards forming an administrative structure with
the LTTE for tsunami reconstruction. (Daily News, 17May 2005, pg. 1),
(Daily Mirror, 17 May 2005, pg. 1)

Maha sangha, public welcome Sri Lanka development forum

A cross section of the maha sangha and the public in Kandy welcomed the
two day Sri Lanka development forum which began in Kandy yesterday and
expressed the hope that it will help accelerate socio-economic
development and bring peace and prosperity to Sri Lanka. Ven. Dr.
Godagama Mangala Thera, mahopadyaya Buddha sravaka Bhikkhu University
and member Asgiriya Chapter Karaka Maha Sangha Sabha said it is both
noteworthy and heartening to see an international parley being held in
the historic city of Kandy. (Daily News, 17 May 2005, pg. 1)

Joint mechanism: Ven. Rathana thera hands over document to president

The parliamentary group leader of the Jathika Hela Urumaya Ven.
Athuraliye Ratana Thera at the conclusion of the inauguration ceremony
of the Sri Lanka development forum yesterday handed over a document to
President Chandrika Bandaranaike Kumaratunga expressing their opposition
to the offering of a Joint Mechanism to the LTTE. The monk who attended
the Sri Lanka development forum - 2005 at Earls Regency Hotel, Kandy,
representing Jathika Hela Urumaya rose to his feet at the end of
President Kumaratunga's speech, to raise opposition to the joint
mechanism. (Daily News, 17 May 2005, pg. 17), (The island, 17 May 2005,
pg. 1)

President tells donors life in danger over mechanism

President Chandrika Kumaratunga yesterday said her life was in "extreme
danger" as she moved to enter into a Joint Mechanism on aid-sharing with
the LTTE. She told the international donors meeting in Kandy that she
was keen to press ahead with a Joint Mechanism to disburse tsunami aid
in the LTTE areas of the north and east despite opposition from within
her own coalition. (The Island, 17 May 2005, pg. 1)

Joint Mechanism only to rebuild tsunami-affected areas-president

The president said that the proposed mechanism was only an arrangement
for administrative purposes in the re-building of the LTTE dominated
areas in the north and the east. The government's endeavour and
commitment was to re-build the northern and eastern rejoin of the
country to the states of normalcy that was before the sad state that
broke out, President Kumaratunge noted at the inauguration of the
development forum in Kandy. (The Island, 17 May 2005, pg. 2)

JHU monk interrupts forum, slams LTTE

JHU parliamentary group leader Ven. Athuraliye Rathana Thera created a
stir at yesterdays' inaugural session of the Sri Lanka development forum
-- making an unscheduled statement slamming the LTTE and the proposed
joint mechanism. The monk caught the participants by surprise when he
took the floor soon after President Chandrika Kumaratunga wound up her
speech. (Daily mirror, 17 May 2005, pg. 1)

Aid meeting ends with renewed push for peace

International donors who have promised up to 2.5 billion dollars for
tsunami-related reconstruction, held a second and final day of talks in
Kandy yesterday seeking to nudge the government and the LTTE to work
together. Dutch ambassador to Sri Lanka, Susan Blankhaart said the
donors felt a Joint Mechanism would make it quicker to deliver aid and
also make it easier for them to give more. She added that European Union
nations backed moves to swiftly establish the proposed "joint mechanism"
that President Kumaratunga promised Monday after saying she would do it
even at the risk of her life. (The Island, 18 May 2005, pg. 1)

Donor pledges top US$ 3 billion: development forum a thumping success

The first ever development forum chaired by the Sri Lankan government
wound up yesterday in the historic city of Kandy, with the international
donor community making commitments and pledges exceeding us $ 3 billion
in the form of grants and moratorium on debts in view of the tsunami
reconstruction process and for other development programmes initiated by
the government, finance minister Dr. Sarath Amunugama announced. The
donor community representing 45 countries, bilateral and multilateral
donor agencies and NGOs made their commitments at the development forum
after the government presented its comprehensive reconstruction plan for
the tsunami-affected areas. (Daily News, 18 May 2005, pg. 1), (Daily
Mirror, 18 May 2005, pg. 1)

Betrayal, says JHU; disgrace, says government

The Jathika Hela Urumaya yesterday launched its strongest attack on the
United People's Freedom Alliance government accusing it of betraying the
country at the Kandy donor conference on Monday just as some other
traitors had betrayed the country to imperialists at the infamous Kandy
convention in 1815. The monk's outburst in parliament came a day after
he shook the Sri Lanka development forum in Kandy on Monday by making an
impromptu and uninvited speech in which he attacked the LTTE and urged
the international community not to force the government to enter into
agreements with the terrorists. In parliament yesterday, the government
hit back hard at the JHU, accusing it of making baseless charges and
putting the government in an embarrassing position. (Daily Mirror, 18
May 2005, pg. 3)

Government unveils new development strategy to donors

The government yesterday placed before the donor forum a new framework
for economic growth and poverty reduction that would make the "pro-poor
pro-growth" thrust a reality. The framework or the new development
strategy was presented by secretary to the treasury and chairman of the
national council for economic development Dr. P. B. Jayasundera during
the morning session of the second and final day of the development a
forum at the Mahaweli Reach Hotel in Kandy. The thorough presentation
made with a good blend of realities and insights by Dr. Jayasundera was
commended by the donor community. (Daily Mirror Financial Times, 18 May
2005, pg. 1)

Foreign donors dangle cash carrot to push peace in Sri Lanka

An increased foreign aid offer of US$ 3 billion for Sri Lanka's tsunami
recovery is mainly aimed at pushing Colombo and Tamil Tiger rebels to
salvage their peace talks, diplomats said Wednesday. Delegates who
wrapped up a two-day review of international assistance to the embattled
island nation nudged the government of President Chandrika Kumaratunga
to work with the rebels, diplomats at the meeting said. "The message
from the donors is very loud and clear: money is not a problem, but get
the peace process back on track," a western diplomat said. "We also want
to see how the government will spend the money." Sri Lanka's Finance
Minister Sarath Amunugama said there were no conditions set by the
donors, who raised their tsunami aid pledges to more than $ 3 billion,
but that the government was also aware of the need for peace. (Island,
19 May 2005, pg. 2)

Foreign donors ask Sri Lanka to push peace to secure aid

International donors ended aid talks with Sri Lanka Tuesday with a
warning to the war-battered and tsunami-hit nation to show progress in
its faltering peace bid or risk losing $ 3 billion. Finance Minister
Sarath Amunugama said foreign donors and multilateral lenders had a
clear message to the island nation to pursue its peace process if it
wanted foreign help for economic development. "Unless we go on the path
of negotiations, many of these pledges and funding will not
materialise," Amunugama told reporters at the end of the two-day aid
review. He said total aid now available to Sri Lanka for tsunami
reconstruction was $ 3 billion over a period of three-to-five years. It
included $300 million in debt relief and another $ 250 million to prop
up foreign exchange reserves. The World Bank's vice president for South
Asia, Praful Patel, said lenders were not imposing conditions on Sri
Lanka, but believed it was important for Colombo to enter into a tsunami
aid-sharing deal with tiger rebels. He said donors were also keen that
Sri Lanka's faltering peace process be revived and noted that despite a
talk's deadlock, both sides had abided by a truce since February 2002.
(Island Business section, 19 May 2005, pg. 1)

Concrete decision on Joint Mechanism within weeks

The President says that the majority of the stakeholders in the
government is with her. She further said that the Joint Mechanism is not
a part of the peace effort and it is a simple administrative structure.
This is the first instance where the Tigers have come forwarded to work
jointly with the government and the Joint Mechanism would be the key to
the peace effort. The president has called for all civil organizations,
political parties and the international community to co-operate with the
government's decision which would be announced within weeks. The Tamils
should live similar to other communities and justice and equality is to
be exercised on Tamils to achieve that goal. The majority of the public
and the parties within the government have shown their support to my
stance. The president expressed the above view at the inaugural session
of the donor forum held at Kandy. (Virakesari, 17 May 2005)

The president must explain about the common structure to the JVP and
ministers before explaining to the ambassadors

UNP Parliamentarian Professor G.L. Peries said that the president
knowing that they are going to loose the presidential race and knowing
well that the UNP leader Ranil Wickremasinghe is going to be the next
president is trying to abolish or lessen the powers of the president. He
further said the president must explain about the common structure to
the ministers and the JVP before explaining it to the ambassadors.
(Thinakkural, 17 May 2005)

Do not fear of common structure if we deviate from peace process great
disaster

In an interview on television the President said that no one need fear
the formation of the common structure, as it would not hand over the NE
to the Tigers. But she warned that deviation from the peace process
would bring great disaster to the country. She asked the public to ask
whether those who oppose the peace process and common structure would
come forward to go for war. (Thinakkural, 17 May 2005)

Common mechanism could help find solution for ethnic problem

Though the common mechanism that is to be taken up for the
reconstruction of tsunami devastated areas of NE seems to be so simple
it can help find a solution to the ethnic problem of the country. The
president expressed this hope when she addressed the meeting of donor
countries. Tigers have come forward to form a common structure with the
government following the tsunami. Some are trying to make this into a
gigantic problem. But this is a simple mechanism to handle the
reconstruction work in the small area of the NE. (Suderoli, 17 May 2005)

JVP decides to oppose the common structure to the last

JVP has taken a firm decision to oppose the formation of the common
mechanism with the Tigers at any cost to the last. The party took the
firm decision at the meeting held yesterday headed by its leader where
all leaders were present. It was decided that they should have public
meetings and policy enlightenment study groups as the government is
trying to sow them as enemies of peace. (Suderoli, 17 May 2005)

Even at the risk of life would form structure for aid distribution

The president says that she is prepared to form the common structure to
divide the relief aid with the tigers even at the risk of her life. The
president at the meeting of donor countries said that the steps she
takes in the coming weeks would decide the future of the country said.
(Suderoli, 17 May 2005)

Trinco port too will have to be given to tigers if Joint Mechanism is
set up

Ven. Galagodaatte Gnanasara thero, the secretary of the 'National Sangha
Federation', said that the Trincomalee harbour too will have to be
handed over to the tigers if the 'Joint Mechanism is established. Rev.
Gnanasara Thero revealed these matters addressing the general conference
of Bhikkus held at the new town hall, Colombo, the day before yesterday
(15). This conference of Bhikkus (buddhist monks) had been convened
against the formation of the Joint Mechanism. (Divaina 17 May 2005)

President seeks support of all for proposed Joint Mechanism

President Chandrika Bandaranaike Kumaratunge said that she anticipated
the support of all the political parties, people and the international
organizations to implement the proposed 'Joint Mechanism for the
reconstruction of the areas in the north/east that had been destroyed by
the tsunami disaster. (Divaina 17 May 2005)

Consent of both sides for the Joint Mechanism, is welcome. It should be
represented by all three communities-Praful Patel

Vice President of the World Bank Praful Patel stated in Kandy at the aid
consortium meeting yesterday that they welcome the consent shown by both
parties to create a Joint Mechanism as the unit to implement the tsunami
reconstruction program of the country and this mechanism should be
represented by all three major communities in the country. (Lankadeepa,
17 May 2005)

Trust that will develop through the Joint Mechanism can help reach
permanent peace on the long run

The president, addressing the Sri Lanka development summit in Kandy
yesterday, stated that through the proposed Joint Mechanism a very good
relationship could be developed between the LTTE and the government,
which also provides a great opportunity to start peace talks and in the
process find permanent peace and that hence maximum use should be made
of this opportunity. (Lankadeepa, 17 May 2005)

President seeks international assistance to setup the Joint Mechanism

The president, addressing the donor consortium meeting yesterday in
Kandy, stated that she is seeking assistance from the international
community and the political leaders of the country to form the Joint
Mechanism with the LTTE as it is the desire of the majority of this
country to get the support of the LTTE for the country's development
process, although a handful of extremists are against it. She also said
that the Joint Mechanism would be just an administrative mechanism to
rebuild the tsunami devastated areas in the northeast, also symbolizing
the historic event of the LTTE and the government working together for
the first time. (Lakbima, 17 May 2005)

All should support Joint Mechanism - Tyronne

The proposed Joint Mechanism was aimed at carrying out development work
in the coastal areas of the north and east and it was not in any way an
attempt to divide the country, north east governor Tyronne Fernando said
yesterday. (Daily News, 17 May 2005)

Government hopeful of forming Joint Mechanism - President

President Chandrika Kumaratunga yesterday asserted that the government
would be able to move forward with the Joint Mechanism as a majority of
the government and the population was supportive of the move. (Daily
News, 17 May 2005)

Joint Mechanism only to rebuild tsunami-affected areas-President

Though some sectors are frightened over the proposed Joint Mechanism,
which in confined only to work with the LTTE in the re-construction of
the tsunami-affected areas of north and east, the majority in the
government and the people are for my endeavors, president Chandrika
Kumaratunga said at the inauguration of the Sri Lanka development forum
at earl's regency hotel, Kandy yesterday. (The Island, 17 May 2005)

President to go ahead with Joint Mechanism

President Chandrika Kumaratunga yesterday announced she had decided to
go ahead with the Joint Mechanism in association with the LTTE to
rebuild the tsunami-battered North and East though she might even have
to risk her life because of this decision. Addressing the international
community at the Sri Lanka development forum in Kandy, the President
urged the world to support her saying she as the president was ready to
take certain dangerous and difficult decisions despite threats on her
life from within and outside her party. The president insisted that no
party should try to gain "petty political advantage" and vowed her
government had the courage to move forward and achieve results within
the next few weeks. (Daily Mirror, 17 May 2005)

Development forum joint communique

The development partners commended the government and the people of Sri
Lanka for their immediate and effective response to the tsunami tragedy.
They noted with satisfaction the near completion of the first phase of
the recovery process. The Government expressed its appreciation for the
prompt and generous support it received from the international
community.

The Government and the donor community issuing a joint communique at the
conclusion of the Sri Lanka Development Forum yesterday said they
particularly appreciated the three presentations made by the Government
Agents of Mullaitivu, Trincomalee and Matara, which graphically
described the challenges on the ground in addressing the needs of the
affected populations.

The development partners reaffirmed their continued commitment to assist
Sri Lanka in the ongoing rehabilitation and reconstruction phase. They
agreed that the reconstruction strategy that has been formulated based
on a set of guiding principles that would include inter alia (a)
allocation of resources based on identified local needs and priorities,
(b) delegation or subsidiarity to the lowest level of government, (c)
consultation with affected communities, (d) ensuring transparency,
accountability and flexibility, (e) reduction of future vulnerabilities,
(f) sensitivity to equity considerations and (g) effective coordination
between the Government and development partners, should be
operationalised.

While noting that financing was not an issue given that the pledges and
commitments already made now stand at approximately US dollars 3 billion
including debt relief, the Forum focused on the implementation
challenges currently being faced, among which were the operationalising
of the guiding principles and effective donor coordination.

The development partners noted the significant progress that had been
made with respect to transitional housing and permanent housing, and
stressed the importance of an early resolution of the problems related
to land acquisition and allocation.

While recognizing the need for the establishment of appropriate buffer
zones for coast conservation and safety, the development partners urged
the government to adopt maximum flexibility to allow for a more
practical implementation of the principle, especially in areas of acute
land shortage.


The Government reiterated its commitment to a number of key initiatives
with regard to the need to improve information flows and coordination
mechanisms involving all key partners, including non-state stake holders
whose contribution is critical in the post tsunami recovery effort; the
clarity of roles at all levels and the determination to assign
responsibility to the lowest possible level of government, while
strengthening their capacity; and monitoring mechanisms with a focus on
transparency, accountability and good governance.

For their part, the development partners committed themselves to assist
Sri Lanka in these efforts and in ensuring that their pledges of
financial and technical assistance would be realized, and to deepen
their coordination process to minimize the burden on the Government's
administrative capacity.

Economic Conditions and Policies

The Government presented an analysis of recent economic developments and
current economic conditions, and set out its plans for the medium term.
The development partners commended the Government for its endeavours to
address the current macroeconomic imbalances and structural bottlenecks.
Among the areas of concern noted on the macroeconomic front were the
need to raise investment especially for infrastructure, the need to
strengthen government revenue performance to address the problem of
continuing high fiscal deficits and growing public debt, and the need to
reduce inflationary pressures that could be exacerbated by rising
petroleum prices and high levels of inflows and domestic activity
related to post-tsunami reconstruction.

Poverty Reduction Strategy and the Millennium Development Goals

The Government presented its discussion paper for a 'New Development
Strategy, a Framework for Economic Growth and Poverty Reduction' (FEGPR)
based on accelerated growth, reduced regional imbalances, and improved
opportunities for the poor. It also presented its report on the
Millennium Development Goals (MDGs) as well as a number of more detailed
presentations such as those on NCED, SEMA, financial sector reforms, and
administrative reforms.

The international community commended the Government for the quality of
these reports. Development partners noted the issues of income
distribution and regional disparity in economic activity in Sri Lanka
and how these were impacting on the prospects for achieving MDGs.

While the proposals that had been introduced to the Forum were viewed as
encouraging, it was agreed that more work was required, especially on
how to improve the growth prospects for the poor. In particular, the
principle of 'no growth, no poverty reduction' was espoused, and the
government was encouraged to continue to build consensus on the specific
strategies for increasing economic growth.

The Government strongly indicated its intention to engage in
reinvigorated efforts to complete its new Poverty Reduction Strategy
(PRS) to achieve the MDGs. In particular, the Government committed
itself to a wider consultation process with all its social, political
and development partners, and declared its intention to complete this
process in the coming months.

While committing itself to key economic reforms, the government would
pay particular attention to the reform design and sequencing of the
implementation process.

The development partners offered their strong support for such efforts
and looked forward to further discussions of the government's PRS.

Partnership and Peace

The participants welcomed the maintenance of the ceasefire agreement,
the continued efforts to implement the National Plan of Action for
Children, and the efforts toward a negotiated settlement of the
conflict.

There was strong support for efforts to bring all communities into the
process through a possible joint mechanism for managing post-tsunami
assistance in the affected areas in the North and East.

The international community strongly endorsed the idea of such a
mechanism and encouraged the parties to continue their efforts to bring
it to fruition as soon as possible to ensure effective aid distribution
at ground level. The Forum especially welcomed the strong commitment by
Her Excellency the President in moving toward consensus building through
wider consultation. Several partners indicated their support and
cooperation for her initiative and commitment.

The partners expressed the hope that this joint mechanism would
contribute to creating an environment that would lead to enhanced mutual
trust and confidence-building between parties to the conflict, thus
enhancing the prospects for peace.

There was a clear recognition that a just and durable peace acceptable
to all her communities would remain the top priority on Sri Lanka's
agenda and that with a return to lasting peace, maintenance of
macroeconomic stability and effective implementation of a comprehensive
PRS, prospects for sustained economic prosperity in Sri Lanka will be
greatly enhanced. (Daily Mirror, 18 May 2005, pg. 10)

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