The Asian Development Bank (ADB) has earmarked U$$ 700 million in project financing and US$ 11 million in technical assistance for the development of Sri Lanka during the period 2003 to 2005. A country programme mission visited Sri Lanka recently to discuss the 2003-2005 country programme. The portfolio for 2003 is based on the country’s performance and ADB’s country and sector strategy.

"Continued ADB support to particular sector will require demonstrated progress in strengthening the sector policy and institutional environment, and continued support will be provided to the sectors that demonstrate satisfactory progress" said Sophia Ho, senior programme officer for Sri Lanka who led the Mission.

A memorandum of understanding bet-ween the Government and ADB was signed on Monday by Charitha Ratwatte, Secretary to the Treasury, on behalf of the Government, and by Sophia Ho on behalf of ADB. The Government and ADB agree that poverty reduction would be effectively addressed through promoting the necessary environment for achieving a sustainably higher level of economic growth.

ADB’s assistance in 2003-2005 will focus on seven sectors: (i) agriculture and rural development, (ii) transport - port and roads, (iii) energy, (iv) finance, (v) education (including informal education), (vi) water supply and sanitation and urban development with strategic regional focus, and (vii) environment and natural resources management. It was also agreed that ADB assistance will be extended to support the Government’s overall efforts in post-conflict planning and rehabilitation. In the 2003-2005 lending pipeline, 13 loan projects have been identified with the main allocation and lending to Sri Lanka from the Asian Development Fund, ADB’s concessional window. The technical assistance pipeline includes 14 projects totalling US$ 11 million in grant assistance, which mainly supports project preparatory activities including necessary sector roadmap formulation, monitoring and updating. In addition, the Government and ADB reconfirmed the lending pipeline for this year which included project financing amounting to approximately US$ 210 million and a technical assistance program of about US$ 4.4 million. Assistance for 2002 includes projects that will support the Government’s power sector reform process and electrification of rural areas; rehabilitation and improvement of provincial roads and road sector reforms; aquatic resource development and quality improvement; and plantation development which will include a credit line and improvement of social infrastructure in the plantation sector.

(ADB press release)