|
Politics
of 'Operation Relief'
Inside
Politics
By Suranimala
The
devastating tsunami not only visited death and destruction on
a massive scale in Sri Lanka, but left in its wake an entirely
new political landscape......
More...
>
Now,
to face the economic tsunami
Politics
of 'Operation Relief'
Ranil
Wickremesinghe, Chandrika Kumaratunga and Mahinda
Rajapakse |
Inside
Politics
By Suranimala
The
devastating tsunami not only visited death and destruction on
a massive scale in Sri Lanka, but left in its wake an entirely
new political landscape.
For
Sri Lanka and her leaders, it was going to be a testing time
with a mammoth task at hand to rebuild a shattered country
where at least nine of the 22 electoral districts were
severely affected and a people left traumatised.
Needless
to say, apart from the tragic loss of life, the economic
consequences of the tragedy are going to be mind-boggling.
|
Death
toll
That
the death toll was expected to top 30,000 and nearly two
million people rendered homeless in a country of 20 million
alone was a pointer to how serious a problem the country has
to grapple with in the months and years to come and one which
calls for a united effort by all her elected leaders and civic
society.
No
doubt, international aid will flow into the country to provide
relief and for the rehabilitation efforts of the country but
the brunt of it will have to be eventually borne by Sri Lanka
as underscored by the statement of US Secretary of State,
Colin Powell.
In
a country already struggling for economic survival and a
government that introduced a short-term budget with the aim of
going for a snap referendum on constitutional reform,
recovering from this disaster is, needless to say, going to be
a long and painful exercise.
The
budget estimates will naturally go haywire and the cost of
living will start soaring as the people in the weeks to come
start settling to their daily routines, trying to keep the
wolf from the door as the full impact of the disaster starts
filtering to the masses as a whole.
Entire
districts have lost their livelihoods with little prospect of
rebuilding their shattered lives in the short term and though
the relief efforts will eventually result in shelter for the
affected people, the challenge of finding employment is going
to be much more daunting and that is the challenge the
government will have to meet, and one that donors cannot
provide.
Mind
you, at the time the tsunami hit Sri Lanka, she was slowly but
gradually being turned into an international pariah state due
to the internal contradictions within government ranks,
particularly in relation to the peace process that had also
put in jeopardy the US$ 4.5 billion pledged by the donor
community. The joint statement issued by three of the four co
chairs, US, EU and Japan just weeks before December 26 was
indicative of this unfolding development.
Further,
even the aid for identified projects were stalled due to a
lack of clarity on the government's economic policy, once gain
due to policy differences between the SLFP and JVP.
A
blessing in disguise
In
that context, in a bizarre sense, the tsunami has come as a
blessing in disguise for the country with international focus
once again riveted on her and it remains to be seen whether
this opportunity is going to be seized and turned into a new
beginning for the country or once again sacrificed at the
altar of political expediency and personal agendas.
Given
this scenario, the focus would primarily be on President
Chandrika Kumaratunga, of whom the nation would naturally
expect enlightened leadership casting aside her natural
tendency to be combative with anyone opposed to her thinking.
The
initial response of the President, however, sadly did not
leave much room for optimism. Politics, it seemed, was taking
precedence over national interest and by Friday the opposition
was crying foul their members were being moved out of the
rehabilitation committees at electoral level.
For
President Kumaratunga, the tsunami is as much a disaster for
the country as it is for her personal political fortunes given
the entire focus pre-December 26 being the abolition of the
executive presidency.
Now,
with a massive relief and rehabilitation task at hand, it
would be unthinkable for the government to even consider
giving priority to any constitutional reforms or a referendum
until such time the rehabilitation and reconstruction work is
completed. The international community would be the first to
turn its back on Sri Lanka, in a situation where a government
gives priority to personal political agendas as opposed to
national reconstruction.
This
frustration was already evident with a massive amount of funds
for rehabilitation being channelled not through the
government, but NGOs like Red Cross.
It
is in that sense the tsunami will also be a personal loss of
the President since the failure to abolish the executive
presidency by at least April would naturally necessitate the
SLFP having to project a candidate for the presidency, making
Kumaratunga political history. Assuming of course the election
will be in 2005, and not in 2006 as per the secret oath taking
ceremony dates.
After
all, could the country even contemplate spending over Rs. 700
million on a referendum when money is desperately needed for
urgent relief and rehabilitation work with over two million
people displaced, and that too from areas which overwhelmingly
voted in the UPFA?
Political
tug of war
But
the initial indications following the President's return to
the country were not heartening with the constitutional reform
moves still very much on her agenda as hinted to the JVP at
President's House on Monday, December 27.
Further,
the political tug of war that was going on between President's
House and Temple Trees following the disaster was another sad
indictment on a country's sense of priorities.
But
for 36 hours after the tsunami hit Sri Lanka, from the debris
rose a ray of hope with both Prime Minister, Mahinda Rajapakse
and Opposition Leader, Ranil Wickremesinghe joining forces to
discuss strategy and put in motion a relief operation, casting
aside their political differences.
At
the time the tsunami hit the east coast early morning of
Sunday, December 26, Prime Minister Mahinda Rajapakse was
preparing for a bana ceremony at Temple Trees in view of it
being Unduvap Poya Day. The time in London being the wee hours
of the morning, President Kumaratunga was in the Land of Noddy,
having enjoyed a Christmas dinner party the previous night.
It
was Opposition Leader, Ranil Wickremesinghe who first got wind
of the disaster to follow when he received a telephone call
from UNP MP, Bandula Gunawardena who was stranded in Arugam
Bay on top of a roof following the tsunami hitting the east
coast.
Gunawardena
told Wickremesinghe there was something eerie about the goings
on and that he was stranded on top of a roof due to rising
water levels.
The
initial reaction of the Opposition Leader was that it could be
floods given the recent developments in the east and advised
Gunawardena to hold tight till he sent a rescue mission.
And
soon after, Wickremesinghe called UNP Gampaha District MP,
John Amaratunga and briefed him on the call made by
Gunawardena and requested him to check with the security
forces whether there were floods and to take steps to rescue
the MP.
Within
minutes thereafter Wickremesinghe received calls from Galle,
Matara and Hambantota on the fury of the sea and he promptly
telephoned Prime Minister Mahinda Rajapakse who was at the
time in the middle of the bana ceremony. A message was taken
and a security officer of the Prime Minister said Rajapakse
would call the Opposition Leader back.
Ascertaining
the damage
With
that done, the Opposition Leader called his Chief Security
Officer, SP H. Wickremasinghe who was in Wadduwa and requested
him to arrive promptly and work the telephone lines and
ascertain the damage whilst also making arrangements for him
to visit the affected areas. UNP Chairman, Malik
Samarawickrama also moved in.
While
these developments were going on at Wickremesinghe's 5th Lane
residence, the Prime Minister who had just finished the bana
ceremony received an urgent call from his driver Tissa who was
in Matara with the message that sea waves were crashing the
city.
Believing
it to be a panic reaction, Rajapakse told his driver it was a
regular occurrence and not to take it seriously but the driver
was insistent the waves were threatening.
At
the same time, Rajapakse received another call from his
security team who were also in Matara informing him their jeep
had washed away and they were taking refuge on a mountain.
The
Prime Minister, it appeared, had escaped the full impact of
the tsunami by a whisker.
Rajapakse
was to that afternoon travel to Matara with Environment
Minister, A.H.M. Fowzie for a ceremony and his driver and
security team had gone in advance.
The
ceremony itself was fixed for the morning of December 26 but
was postponed at the last moment for the afternoon due to the
bana ceremony at Temple Trees in the morning.
In
fact, Rajapakse and his family had spent Christmas eve and
Christmas day in Bentota at the Prime Minister's official
residence, planning to travel to Matara early December 26 but
returned to Colombo Christmas night owing to the change of
plans for the bana ceremony. Both the Premier's official
residence and the Matara ceremony venue were fully impacted by
the tidal wave.
Thereafter,
having taken the call of his security officer, the Prime
Minister receiving the Opposition Leader's message, returned
the call and the duo discussed the unfolding developments.
With
Wickremesinghe giving a full picture based on information in
his possession and the Prime Minister likewise indicating
facts within his knowledge, the duo decided to make an appeal
for the people to remain calm, with relief measures being
activated.
The
Prime Minister also tried to make contact with the President
in London but failed to get through.
Even
Rajapakse and Wickremesinghe were not to know at the time the
scale of the devastation but decided to get the security
forces also activated in rescue operations in addition to
forming an all party committee to draw up a plan of action.
Relief
operations
With
that out of the way, the Opposition Leader appointed a team
headed by Deputy UNP Leader, Karu Jayasuriya to spearhead
relief operations for the party and took off to the Wellawatte
and Dehiwala areas accompanied by Colombo District MP, Ravi
Karunanayake to inspect the damage whilst the Prime Minister
started communicating with the service chiefs.
By
this time, Prime Minister's Secretary, Lalith Weeratunga,
Urban Development Minister, Dinesh Gunawardena and JVP
Propaganda Secretary, Wimal Weerawansa also trooped into
Temple Trees and there a command centre was set up to carry
out rescue missions.
By
now the time was 10:30 a.m., and the Prime Minister again
tried to make contact with the service chiefs and requested
their presence at Temple Trees to discuss overall rescue
operations having set up the command centre but had little
luck.
The
service chiefs, the Prime Minister was told, were busy at a
meeting with Secretary, Law and Order Ministry, Tilak
Ranaviraja and could not meet Rajapakse at that point of time.
Having
given a little more time, the Prime Minister again called back
only to receive the same response, which was repeated at the
third attempt as well.
Politics,
it seems, was at play by this time with powers that be not
keen to allow the Prime Minister to spearhead the operation in
the absence of the President and several key ministers who
were overseas including Lakshman Kadirgamar, Anura
Bandaranaike, Mangala Samaraweera and Sarath Amunugama. Even
Treasury Secretary, P.B. Jayasundera and Mano Tittawela were
overseas.
The
President had by now got an initial report on the tsunami and
decided to work through Ranaviraja with no intimation to the
Premier. The President did not even call the Prime Minister
and request him to take charge till she chose to return.
In
sharp contrast was the action Ranil Wickremesinghe took when
the floods and landslides hit Ratnapura when he was premier.
On that occasion he promptly told his Deputy, Karu Jayasuriya
to take over till his return and even upon arrival directed
Jayasuriya to carry on the relief effort with Wickremesinghe
guiding it and looking at overall strategy.
Be
that as it may, exasperated at the response received from the
Law and Order Ministry, the Prime Minister accompanied by
Minister Gunawardena and Weerawansa decided to go to the Law
and Order Ministry where the service chiefs, Defence
Secretary, Asoka Jayewardena and Ranaviraja were in
discussion.
Walking
into the meeting, the Prime Minister told Ranaviraja there was
no point in wasting time talking endlessly when the need of
the hour was action and said he has already set up a command
room at Temple Trees to handle relief and rescue operations.
Chipping
into support the Premier was Navy Commander, Daya Sandagiri
who is also chief of joint operations. Sandagiri said he has
also set up a command centre at his headquarters and it was
fully manned by his officers.
With
that said, Defence Secretary Jayawardena pointed out the
absurdity of setting up yet another command centre at the Law
and Order Ministry and decided to work from Temple Trees.
And
while these decisions were being taken, President Kumaratunga
was to call Ranaviraja again from London to ascertain the
state of affairs and the Law and Order Secretary quickly
handed the telephone to the Prime Minister.
That
was to be the first and only contact that day between the
President and the Prime Minister.
Taking
the telephone, Prime Minister Rajapakse gave the President a
quick update of the situation and the steps he has taken and
advised Kumaratunga to return to the country at the earliest.
With
that said, Rajapakse and team left for Temple Trees where a
meeting of the donors for 3 p.m. was also convened.
The
President for her part spoke to Ranaviraja for a few more
minutes thereafter and cut the line. She later told friends
with her she cannot leave that very day but would do so the
following day.
President's
directives
And
while the Prime Minister and the service chiefs moved on to
Temple Trees to execute their rescue aid relief mission, clad
in full suit Ranaviraja was to go on state television
explaining the unfolding developments and the directives
issued by the President to execute relief operations.
The
following day, Monday, December 27, the Premier and the
Opposition Leader were to speak again on the ground situation
with a meeting fixed that morning of party leaders at Temple
Trees to discuss the plan of action underway.
The
previous night, December 26, the Prime Minister had also
convened an emergency cabinet meeting and appointed a sub
committee chaired by him and comprising Ministers Dinesh
Gunawardena, Susil Premjayanth, Pavithra Wanniarachchi, Felix
Perera, Tissa Vitarana, D.E.W. Gunasekera, Anura Dissanayake
and Wimal Weerawansa to spearhead the operation from the
government side.
Thus,
after their discussion the Opposition Leader informed
Rajapakse he would be going down south to inspect the
situation whilst Karu Jayasuriya would attend the party
leaders meeting. Wickremesinghe also told Rajapakse he will
keep him briefed on his observations following the visit.
And
while the party leaders meeting was underway at Temple Trees,
the Opposition Leader was touring Galle and was informed by
the government agent that three hospitals were out of service
due to the devastation and relief and rescue operations were
slowing down.
Given
that information, Wickremesinghe promptly called Rajapakse and
put the government agent on line to give him a first hand
account of the situation in Galle after which the Opposition
Leader and the Prime Minister discussed further steps that
needed to be taken to expedite the relief operation.
The
Prime Minister by this time had also called Indian High
Commissioner, Nirupama Rao on her mobile phone and urged assistance, particularly for helicopters, only to
be told she was in India.
However,
the High Commissioner said she would get her military attache
to get in touch with Rajapakse to plan the rescue operation,
which he did.
To
reinforce the urgent requirements, the Opposition Leader too
called India as well as Japan and Norway and sought urgent
relief whilst informing Milinda Moragoda who was in Washington
to make contact with the State Department.
And
by Monday evening, President Kumaratunga was back in town and
immediately took charge of the operation. Though the Prime
Minister had set up a fund for relief operations, the
President was to through the media announce that all funds
should be deposited in an account her office had opened at
People's Bank.
The
President, for example, called the Maliban owner and requested
assistance, only to be told he has already done so through the
Prime Minister.
Power
games
That
was the starting point of a lack of coordination and rather
than pooling all teams together, different power blocks in
government started operating separately.
Nevertheless,
Monday evening itself the President called a meeting with the
Prime Minister, several ministers, service chiefs and key
officials, Tilak Ranaviraja, Asoka Jayawardena, Jayantha
Dhanapala amongst others, where there was a stock taking
exercise.
It
was Ranaviraja who first tried to explain the steps taken only
to be cut down to size by the Prime Minister, who by this time
appeared agitated at efforts to undermine the relief
operations he had put in motion.
Rajapakse
told the President, whatever Ranaviraja tried to make out, all
credit must go to the service chiefs who acted promptly to put
rescue operations in motion.
The
Premier explained the steps taken to photograph, finger print
and bury the bodies and combat the outbreak of disease.
Following
this meeting, the President was to also meet with Opposition
Leader, Ranil Wickremesinghe and Karu Jayasuriya, where it was
whispered there will be no show by Wickremesinghe.
Having
still not returned from his tour in the South, Wickremesinghe
sent Jayasuriya for the meeting in advance, causing panic at
President's House.
Frantic
calls were made to Wickremesinghe only to be told he was on
his way. In fact, CWC Leader, Arumugan Thondaman was also
invited for the meeting stating the Opposition Leader too
would be present but there was no show by Thondaman.
Present
at the meeting with the President were Rajapakse, Dinesh
Gunawardena, Ferial Ashraff, Douglas Devananda, A.H.M. Fowzie,
Tissa Vitarana, D.E.W. Gunasekera, Ratnasiri Wickremanayake,
Wimal Weerawansa and Tilvin Silva. Wickremesinghe and
Jayasuriya represented the UNP. Government officials including
Ranaviraja, Dhanapala, Harim Peiris and Foreign Secretary,
Palihakkara were also at hand.
And
when the meeting started, Palihakkara making a pitch for his
Minister, Lakshman Kadirgamar, who was overseas, said the
minister had contacted all diplomatic missions and solicited
assistance.
It
was, however, Ranaviraja who raised a few eyebrows claiming
the death toll was only around 8,000, which comments drew a
sharp response from Ferial Ashraff.
Snapped
Ashraff - "How can that be? In Ampara alone, the death
toll will be 5,000."
Assessment
Supporting
Ferial Ashraff was the Opposition Leader, who went on to give
his assessment of the situation and the action that needed to
be taken to expedite relief and rescue operations. He also
adverted to the hospitals that were out of service in the
south.
This
prompted the President to state the death toll would rise over
15,000 but it was evident by this time given the drift in
conversation the government had lost all direction.
With
the return of the President and Prime Minister Rajapakse's
operation marginalised, confusion was the order of the day.
In
fact, on the way out, the ministers were heard commenting on
the embarrassment of having to get details of the hospital
situation from the Opposition Leader.
It
is this lack of coordination evident on the ground that led to
television channels such as CNN and BBC being critical of the
government's handling of the relief operations.
And
Wickremesinghe for his part too realising the coordinated plan
discussed with Rajapakse being sidelined, told Jayasuriya to
work with the President on her efforts but told his party to
intensify the party's own efforts to ensure the maximum number
of people received relief despite the lack of a government
machinery to back them up.
Sadly,
this tug of war in government also saw the business community
aghast when they met with President Kumaratunga on Tuesday,
December 28.
To
the shock of the business community, the President who was
holidaying in London at the time of the calamity rather than
thanking all concerned for their untiring efforts, started off
the meeting by being critical of the Prime Minister, stating
nothing had happened till she returned to the country the
previous evening.
Bewildered
at her comments, several business leaders commented that for
Kumaratunga, even at a time of national calamity, the
preoccupation was taking cheap political shots.
LTTE
reaction
And
the consequences of these developments were felt before long
with the LTTE and TNA coming out strongly against the
government for its handling of the humanitarian crisis in the
north east
So
irked and vexed were the Tamil MPs as well as the LTTE, it was
decided to boycott all meetings convened by the government.
However,
one MP, Selvan did not receive the decision of the party and
participated at a meeting in Jaffna called by Minister D.E.W.
Gunasekera and Harim Peiris, but he used the opportunity to be
sharply critical of the government's actions.
It
is this wrath the Tamils also unleashed when the Prime
Minister visited Jaffna on Tuesday accompanied by Minister
Jeyaraj Fernandopulle, Susil Premajayanth, Anura Dissanayake,
Deputy Minister Dilan Perera and Wimal Weerawansa.
The
previous night itself, hearing of the impending visit, it was
announced through loudspeakers the JVP will not be welcome in
the north but this information did not reach Rajapakse.
Thus,
on Thursday, when the Prime Minister arrived in Jaffna, there
were loud protests including an attack with sticks by Tamils
looking for the JVP.
Stating
they were not opposing the visit by the Prime Minister, the
placard waving protestors asked the JVP "traitors"
to get out of the north east. The JVPers, it seemed, were
getting a taste of their own medicine and took cover in the
safety of the security forces.
Subsequently,
the President invited the TNA MPs for a meeting but was
informed by MP, Mavai Senathirajah the party will not
participate at her meeting.
But
for the President, the important factor was the propaganda
mileage and the state media announced the following day,
relief was flowing to the north and east.
That
apart, the political fallout of the tsunami devastation is
causing ripples in government and it can but only be hoped,
Kumaratunga will at least now rise above petty politics and
act in the best national interests.

Now,
to face the economic tsunami
|
By
Mandana Ismail Abeywickrema
The
impact the tsunami devastation could have on the
country's economy is still being assessed by the Central
Bank as well as the donors in a bid to promote
coordination of donor support for medium and long-term
rehabilitation and reconstruction. But the consensus was
that there would be an impact on the economy both in the
short term as well as in the long run.
However,
by the end of the week, neither party was in a position
to give any figures on the magnitude of the damage.
On
December 30, Treasury Secretary, P. B. Jayasundera held
discussions with the donor agencies headed by the UNDP
on long and short term relief measures. |
Deputy
Governor,
Central Bank, W. A. Wijewardena |
A
look at the areas affected and the video footage on the
destruction of infrastructure and properties sends one warning
bell - the new year is going to herald in a different kind of
challenge for the country's economy.
Reduced
growth
The
devastation brought about by the tsunami, many feel, would yet
again hamper the country's economic growth, at a time it was
on a rebound from facing the impact of double shocks - drought
and escalating global fuel prices - through most of 2004.
The
devastating effects of the tsunami are expected to reduce the
country's growth levels, increase inflation and cost of
living. In short, economic disaster.
Be
that as it may, officials from the Central Bank and economic
analysts feel that although the destruction would create a
negative impact on the economy, it would not be as bad as
expected.
Private
economic analysts say that the country would experience a 1%
drop in the GDP growth rate. Deputy Governor, Central Bank, W.
A. Wijewardena however, says that the impact would not be that
bad.
Maintaining
the country's foreign reserves too is expected to pose a
challenge for the government. However, analysts feel that the
foreign aid flow is expected to keep the country's foreign
reserves from declining next year.
One
thing that analysts feel the masses would be hard put to face
up to - the cost of living brought about by the widening of
the budget deficit.
However,
with the large amount of rebuilding and rehabilitation work,
"everyone will have to bear some cost of it."
Fishing,
tourism hard hit
The
tourism industry and the fisheries industry have been badly
hit by the disaster as every fisheries harbour in the southern
and eastern coastal belts has been destroyed.
The
tourism industry was booming this time round with almost every
resort hotel being fully booked for the season. The
unfortunate incident that took place on Sunday is expected to
dent the profits made so far by the industry.
The
only saving grace for the country's economy is the fact that
the most devastating effects of the tsunami were felt mostly
by the Eastern Province and some parts of the Southern
Province, which does not contribute as much to the country's
economy as the Western Province, which has not been affected
that much.
Officials
from the Prime Minister's Office observed that while the
coastal belt from Negombo to Jaffna has been affected by the
tsunami, the worst affected areas were Ampara, Batticaloa,
Trincomalee and Galle in the Southern Province.
The
government is yet in the process of assessing the full amount
of the damage in the areas affected and as a result, is not in
a position to release rough estimates.
Officials
however noted that the rebuilding of the infrastructure in the
affected areas - roads, railways, buildings and fisheries
harbours - would take some time.
While
the main Galle Road has been cleared up to Hikkaduwa,
travelling beyond that point would not be possible for
sometime as three main bridges have been badly damaged by the
tsunami. The reconstruction of the railway is also expected to
take several weeks or even months.
More
than 15,000 vehicles have been damaged due to the tsunami.
CB
task force
Wijewardena
said that the Central Bank has already appointed a task force
to assess the damages and its impact on the country's economy,
adding that till the final report is made available,
commenting on the damage or the economy would not be possible.
An
interim report by the task force was however, expected to be
handed over to the government by Friday.
However,
Wijewardena noted that while there definitely would be a
negative impact on the country's economy, it would not be as
disastrous as expected.
According
to Economic Analyst, Ravi Abeysuriya, the worst impact of the
tsunami was felt by the Southern and Eastern Provinces, which
do not make large contributions to the country's economy. Most
of the contributions to the country's economy is made by the
Western Province.
Abeysuriya
observed that although the tourism and fisheries sectors would
be affected to some extent, it would not be as bad as the
resumption of war.
Apart
from the loss of lives, Abeysuriya felt that the rebuilding of
infrastructure and industries would go on with the foreign aid
expected to flow in.
Tourism
is expected to pick up in a few months, as a natural disaster
is far different from a war or a bomb explosion.
Abeysuriya,
sharing the same sentiment as Wijewardena said that the
economic impact would not be as bad as expected.
However,
he pointed out that the disaster would result in an increase
in the budget deficit for the year, which in turn would result
in an increase in the cost of living.
"Everyone
will have to bear some part of the cost of the disaster,"
he said.
While
discussions are being held from President Chandrika
Kumaratunga to government officials to multilateral donor
agencies, this week is expected to see the beginning of the
rehabilitation programmes to find relief for those displaced.
January
15 is expected to be the deadline given by President Chandrika
Kumaratunga to begin the rebuilding efforts.
|
Rising
cost of living
According
to the December Monetary Policy Review, inflation
continued to be on an upward trend as reflected in the
increases in all consumer price indices.
The
annual average change in the Colombo Consumers' Price
Index (CCPI) rose from 6.1% in October 2004 to 6.8% in
November, while on a point-to-point basis the CCPI rose
from 12.1% in October to 13.1% in November.
A
similar trend was seen in the Sri Lanka Consumers' Price
Index (SLCPI) with the annual average change rising from
4.1% in September to 5.4% in October and the
point-to-point change increasing from 14.4% to 15.2 %t.
The
pressure on prices from supply side factors such as the
drought, which adversely affected domestic food
production and high import prices, particularly of
petroleum imports is expected to ease with the
improvement in weather conditions and the decline in
international oil prices.
However,
this trend is expected to further continue with the
current devastation caused by the tsunami.
|
The
cost of living index as recorded by the Central
Bank of Sri Lanka is as follows:
January
3479.4
February
3454
March
3426.3
April
3471.3
May
3598.2
June
3672.8 |
July
3675.7
August
3635.9
September
3684.7
October
3699.4
November
3826.2
December
3969.3
Under
the present circumstances, the cost of living
index is to rise further. |
"Growth
down but not stopped"
According
to Country Head, ADB, Alessandro Pio, although there
would be a negative impact on the country's growth rate,
it would not stop growth.
Pio
observed that the tsunami devastation would affect the
growth rates of 2005.
While
pointing out that the magnitude of the damage has
affected a thin coastal line which encompasses a very
large area, Pio noted that the reconstruction of the
devastated areas would pose a great challenge to the
government.
Pio
also said that apart from the extensive damage caused to
the infrastructure in the relevant areas, industries
like tourism and fisheries too would be badly hit.
Tourism,
as pointed out by him is expected to pick up with the
gradual realisation of the rarity of such an event by
tourists.
The
ADB, according to Pio, is working with other development
partners, and the UNDP is to take the lead among the
donor community.
Pio
said that the donors plan to assist the government
assess the extent of the damage and readjust already
existing loans to address specific requirements and look
at longer term investment requirements.
However,
the assessment of the UNDP led team of the damage is
also ongoing. |
|