Three-year plan to provide funding:
ADB pledges to support NE development
The Asian Development Bank (ADB) will support Sri Lanka’s post war
development effort and has drawn up a three-year plan to provide funding
mainly focusing on development activities in the North and the East.
“With the end of the war Sri Lanka now faces the huge task of
reconstruction and development of the North and the East. The ADB hopes
to play an important role in infrastructure development in these
provinces and will enhance support to Sri Lanka”, said ADB Country
Director, Sri Lanka Resident Mission Richard Vokes.
Asian Development Bank
|* Over 60
percent funding for NE
* Three-year average funding of
$ 300 million
* Key areas of focus - energy,
transport and water supply
Over 60 percent of the funding is expected to target the North and
the East provinces under the ADB’s proposed program over the next three
There has been significant improvement in investor confidence and the
tourism industry is picking up.
There are prospects of -much higher economic growth next year, he
The ADB has approved US $ 330 million for three projects - namely $
160 million for a clean energy and access improvement project to develop
the power sector, $ 70 million Eastern and North Central provincial road
project to rehabilitate 150 kilometres of provincial roads in the
Eastern Province and 220 kilometres of provincial roads in the North
Central province and a $ 100 million Greater Colombo waste-water
management project to improve urban environment and public health of
urban and suburban residents in Colombo through an improved waste-water
management service, he said.
The ADB assistance for 2010, 2011 and 2012 will be nearly $ 300
million on average. Funds will be used to support areas of energy,
transport and water supply. It aims at energy efficiency improvements,
developing use of renewable energy and increasing connections and
services to rural households including poor households in
conflict-affected areas in the North and the East.
The road sector continues to be a key sector receiving support from
the ADB and the recently completed projects includes the road network
improvement project which was completed improving 309 national roads and
Another key area of support is the ADB’s North East Coastal Community
Development Project and North East Community Restoration and Development
Project have continued to assist vulnerable communities to improve
livelihoods, meet basic needs and strengthen community management of
The communities have been empowered to identify and prioritize their
needs in basic community level infrastructure, he said.
Sri Lanka’s economy is growing extremely well and expected to grow at
around seven percent.
Once the impact on the election eases there would be accelerated
growth. However, this depends on how economic policies are managed in
the post election period, said Lead Economist Narhari Rao.
The continuous efforts by the Government to reduce inflation,
effective monetary policies and reduction in interest rates have had a
positive impact on economic growth.
It is important to focus on reducing the fiscal deficit, building
reserves and financial sector reforms. Overall, a positive picture for
the Sri Lanka’s economy could be anticipated in the years ahead, he