Home

News

Politics

Issues

Focus

Editorial

Spotlight

Insight

Sports

Business

Review

Arts

Letters

Nutshell

Interviews

Fashion

Archives

•  Foreign aid delayed due to dissolution of parliament

US$ 1 bn of Tokyo funds already received

By Mandana Ismail Abeywickrema 

World Bank Country Director, Peter Harold said Sri Lanka has already received close to US$ 1 billion of the US$ 4.5 billion pledged at the Tokyo donor conference last year.

He says the country still has to receive the balance US$ 3.5 billion, promised during a period of four years. He however was not sure as to the amount already received this year.

He pointed out that although much emphasis has been laid on the US$ 4.5 billion aid package, the amount that has already been received by the Sri Lankan government is not mentioned often.

Harold explained that of the US$ 1 billion that was already received by the Sri Lankan government, close to US$ 300 million came as programme funds while about US$ 700 million came as project assistance (budgetary support). Therefore, Sri Lanka has been receiving roughly US$ 60 million a month as project assistance.

He also said that with the dissolution of parliament, the country would not be entitled to the money allocated for budgetary assistance.

Speaking of the rate of disbursement, Harold stated that the rate of disbursement for this year so far has been lower than the previous year (2003) as the money for budgetary support has been affected due to the dissolution of parliament.

As for the rest of the donor funds and foreign investments, Harold stated that apart from the ongoing projects, there would be a delay in funds as the country at present is functioning under a caretaker government.

However, President Chandrika Kumaratunga's decision to sack all non-cabinet and deputy ministers has also paved the way to delay further the expected foreign aid, as funds pledged for the rehabilitation of the north-east cannot go ahead as there is no ministry in charge of rehabilitation anymore.

  Headlines