I am greatly honoured to address this assembly on behalf of the Government of Sri Lanka. At the outset, let me thank the authorities of the Kingdom of Spain for the excellent arrangements to host us in this magnificent city of Madrid and for the hospitality extended. May I also thank the Kingdom of Spain for the new development partnership that Sri Lanka was able to build with Spain especially for the reconstruction of bridges, roads and water schemes after the tsunami disaster.

This year marks the 41st anniversary of ADB. Over the past 4 decades, the Asian region has achieved remarkable development, with acceleration of economic growth reduction of unemployment and poverty and with several countries reaching high standards of living. There is no doubt that ADB has made a considerable contribution to this achievement. I congratulate President Kuroda for his strategic vision and stewardship enabling the ADB to address new challenges and exploit new opportunities.

My country is pleased that the negotiations of ADF X have been successfully concluded. While we should welcome a significantly higher amount of resources under ADF X, it is of great importance that we make a special effort to obtain the maximum benefits out of these enhanced resources. ADF X would provide a chance to ADB to make a significant impact towards the achievement of Millennium Development Goals. I do hope that we can improve the living standards of the people in the region, particularly of the poor with a more equitable distribution of the benefits of growth. Recent events have underscored the need to link infrastructure development with rapid agricultural growth. Agriculture is the mainstay of the poor in the region.

ADB has been a continuous supporter of Sri Lanka’s development efforts for more than four decades. In 2007, ADB committed loans amounting to $ 445 million for the development of the Port, Education and SME sector. I must thank ADB for providing grant assistance under JFPR facility for improvement of the quality of life of rural poor through a livelihood development program linked to improvement of rural access roads.

Sri Lanka is now in the third year of the Government’s 10 year development program, with the objective of achieving faster and all-inclusive growth. I am pleased to mention that we have been making steady progress towards this objective, despite unprecedented challenges, i.e. the escalation of oil and food prices and terrorist threats.

As a newly emerging middle income country, we have recognised the need to tap other sources of funding to obtain resources needed for our accelerated infrastructure development drive. We were able to successfully issue a debut international bond issue of US$ 500 million in 2007, a landmark deal in a difficult year. We are also strengthening our relationships with regional trading partners, which is in line with ADB’s strategy of promoting regional integration. We have no doubt that ADB would continue to play its prominent role as a key development partner in Sri Lanka throughout the present development decade and beyond.

Let me present a few salient features in the Sri Lankan economy. Most macroeconomic indicators have shown promising developments in 2007. The economy grew by 7 per cent after achieving 7.7 per cent growth in 2006. The average rate of unemployment reached its lowest ever recorded level of 6.0 per cent, while the per capita income rose further to US $ 1.617. For us Trade has proved to be as important as aid. The developed economies must continue to assist us as the European Union provides us the GSP + facility.

Meanwhile, the most recent statistical survey results of our Census and Statistics Department have revealed encouraging developments in reducing poverty in the Country. The results show a considerable decline in the poverty Head Count ratio to 15.2 per cent in 2006 from 29 per cent in 1995. We are confident that our development programs are on the right track and that the progress that we have seen in recent years is expected to continue despite challenges. Among these challenges is the need to end terrorism and find a negotiated political settlement based on the devolution of power. On the 10th of this month the newly liberated Eastern Province will go to the polls to elect their own provincial council which will enjoy powers devolved to them under our constitution.

I express my sincere appreciation of the efforts of the President of ADB and his team for the continuous support given to Sri Lanka and look forward to strengthening partnership in the future.

Finally, may I say how grieved we are about the devastation in Myanmar. As a country which was affected by the Tsunami our sympathies go out to the people of Myanmar and wish to pledge our support and hope for a speedy return to normalcy.