OCHA Situation Report
Sri Lanka
9 - 15 September 2005


Source: UN Office for the Coordination of Humanitarian Affairs

Overall Situation

The Supreme Court rescheduled the hearing of the three Fundamental 
Rights applications against the Post-Tsunami Operational Management 
Structure (P-TOMS) agreement signed between the Government and the LTTE 
for November 22.

The Development Assistance Database (DAD) a web portal to enable 
easy-to-read online access to the assistance coming into Sri Lanka for 
tsunami recovery and to help to better coordinate and monitor post 
tsunami recovery aid, was launched on September 2. It can be accessed at 
www.dad.tafren.gov.lk

The Task Force for Rebuilding the Nation (TAFREN) is spearheading the 
online database with the support and funding from UNDP Colombo. TAFREN 
is leading the customization of the database to ensure that it is 
tailored to the specific context of post tsunami reconstruction needs in 
Sri Lanka.

It is designed to promote the allocation of assistance in line with 
priority national needs. DAD Sri Lanka is accessible to the world 
community over the internet, including ministries, local governments, 
donors, UN, NGO partners and the Sri Lankan public. DAD shows the 
allocation of aid by sector, district, donor and implementer. It 
includes projects from UN agencies, International Financial 
Institutions, bilateral donors, national and international NGOs and the 
private sector.

The Sri Lankan Tourism Board (SLTB) says it is on track for a record 
year in 2006 with arrivals growth set to return to double digits. An 
Australian spokesperson for the SLTB said consumer confidence was also 
likely to be boosted by the level of investment which has poured into 
Sri Lanka's tourism infrastructure since the tsunami and that recent 
refurbishments, the opening of new coastal properties, keen investment 
interest from big players in the international hospitality industry and 
a positive tourism outlook are all strong indicators that Sri Lanka is 
on track for a return to double-digit growth in tourist arrivals. Among 
the latest developments on the ground are: a brand-new luxury property 
-- Saffrons Beach Villa, scheduled to open on the south coast in 
December, the six-suite Apa Villa Thalpe near Galle reopened recently 
and construction had begun on the US$ 100 million 245-room Hyatt Regency 
Colombo which is scheduled for completion in December 2008.

The 2005 World Summit began in New York today and will go on till 16 
September. Sri Lankan president, Chandrika Bandaranaike will also be in 
attendance.

Main challenges and response

Sri Lanka's progress in post tsunami recovery has been rated as slow 
according to a report in the Asian Development Bank Outlook (ADO) 2005 
Update released last week. It cited political impediments to recovery as 
one of the reasons for slow progress. In an examination of the impact of 
the tsunami on poverty, ADO 2005 described two scenarios of recovery 
fast and slow. Under the fast-recovery scenario assumed to take 2-3 
years in most of the countries, poverty caused by the tsunami would be 
eliminated by 2007 in all countries except Indonesia, where the 
additional number of poor would still be around 345,000 that year. If 
the recovery process took longer than 4 to 5 years (the slow-recovery 
scenario) the additional number of poor would be 1.1 million in 2007.

The IMF warned Sri Lanka that it is exceeding budget targets and urged 
tough measures to cut subsidies, especially on fuel, in order to salvage 
the economy. In a detailed report on the state of the island's economy 
the IMF said the government has overspent on subsidies while failing to 
collect expected tax revenues so far this year. The IMF also said Sri 
Lanka's central bank's decision to hike interest rates by a quarter 
percentage point on Tuesday in a bid to slow galloping inflation was 
insufficient. Forecast inflation is at 14 pct this year up from 7.9 pct 
last year and 2.6 pct in 2003. Economic growth was projected at 5.3 pct, 
down from 5.4 pct in 2004 and 6.0 pct in 2003. Sri Lanka's presidential 
elections are due between October 22 and November 21. The IMF said that 
managing the economy in the near-term will be a challenge and warned 
that the policy slippage experienced in 2004 must be avoided. However, 
the IMF noted that the tsunami had brought a respite to the economy by 
way of increased foreign aid and a freeze on some of its foreign debt 
and said monitoring aid flows and ensuring accountability in their use 
will be a key priority in mobilizing external financing for tsunami 
reconstruction. The medium-term outlook depends on Sri Lanka's ability 
to move toward fiscal consolidation, implement structural reforms and 
revive the peace process according to the IMF said.

The Muslim Council of Sri Lanka (MCSL) which comprises of 58 National 
Muslim Organizations in Sri Lanka met with the presidential candidate of 
the main opposition and presented issues of concern to the Muslim 
community. The group wants the buffer zone to be withdrawn immediately, 
establishment of a state organ or an authority especially designated to 
handle all rehabilitation and reconstruction work in tsunami-affected 
Muslim and Sinhala areas and Muslim tsunami victims and forcibly evicted 
Muslims of the north east together with all other victims of the tsunami 
to be treated as a special class or treated favorably for receiving land 
permits and grants in their home districts or adopted districts. 
Meanwhile the abolition of the P-TOMS agreement, major revisions of the 
ceasefire deal and the rejection of any self-governance or homeland 
concept are among the conditions in the agreement between presidential 
candidate Prime Minister Mahinda Rajapakse and the Jathika Hela Urumaya.

Health

A district-wide de-worming campaign is being conducted by IOM in 
cooperation with the Deputy Provincial Director for Health Services 
along with the Zonal Director of Education. IOM gathered children in 
schools and health clinics in both cleared and un-cleared areas of 
Mannar yesterday and gave them a single dose of medication, which will 
protect them from worms for up to a year at a cost of Rs.14 per child. 
Thirty-thousand children will benefit from this endeavor. The parasites 
cause anemia and dysentery, while serious cases result in malnutrition, 
stunting and delayed puberty. The de-worming campaign is supported by 
AUSAID and will be complemented with projects to promote better heath 
and hygiene.

A renowned Pakistani epidemiologist and researcher Prof. Aurangzed Hafi 
who has conducted an extensive survey on newly born babies in 
tsunami-affected areas says there is an increased risk of child 
retardation and urged health organisations like WHO and UNICEF to 
consider taking early action regarding the matter. To bring the 
situation under control some special immune enhancing and nutritional 
supplements should be developed and should be exclusively formulated 
according to the specified needs of the post disaster situation.

Water and sanitation

IOM and World Vision have signed a US$ 500,000 agreement to improve 
vital water and sanitation services for the tsunami-affected. Work has 
already begun in Ampara district in the east ahead of the onset of 
annual monsoon rains, which frequently cause floods and put pressure on 
existing drainage systems. The agreement covers a wide range of 
activities, such as the cleaning of wells, waste disposal, ensuring 
adequate drainage at transitional housing sites and the construction of 
water and sanitation systems for temporary schools and health centres. 
With an estimated 80 per cent of Sri Lankan children suffering some form 
of diarrhoeal disease yearly, the project also includes components to 
help educate displaced people about healthy hygiene habits.

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