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With peace Tremendous scope for development - ADB President

by Ravi Ladduwahetty

Visiting President of the Manila based Asian Development Bank Tadao Chino, in an exclusive one-on-one interview with the Daily News at the Lanka Oberoi on Tuesday night, said that his bank was certainly hopeful that peace negotiations between the Government and the LTTE would result in an end to the conflict.

The ADB is encouraged by the peace process and we feel that there is tremendous scope for economic growth and trade in Sri Lanka. We also feel that there is potential for tourism and investments to improve if the present peace negotiations develop into something permanent, he asserted.

Commenting on his visit to Sri Lanka for the ceremonial inauguration of the Bank's Resident Mission in Colombo on Tuesday morning, he said:" This is an opportune time for my visit as it comes in an important phase of the peace process. It affords me an opportunity to see for my self the progress being made."

Asked to comments on the bank's participation in the development process and rehabilitation, Mr. Chino said:" The ADB, in cooperation with its development partners will also assist the rehabilitation of the North and the East.

We will also assist in the critical planning process which must be undertaken such an enormous rehabilitation task to be effective. As the peace process develops, we will assess the feasibility and timing of large rehabilitation.

Commenting on prospects for economic development, he said:" In the Sri Lankan context, we support initiatives to develop Sri Lanka as a service hub for shipping, banking and trading but the present regulatory environment needs to be greatly enhanced to support these initiatives, he said.

This conflict has affected the tourism and the trade sectors of Sri Lanka.

The contribution of the Northern and Eastern Provinces to the nation's GDP has fallen sharply from 15 percent in the early 1980s to 4 per cent in 1987. It is largely because of this conflict that there is much poverty in this country. If peace is achieved, then the loss of 2 percent of GDP can be recovered.

Responding to a question on staggering military expenditure which accounts for 30 percent of GDP, he said:" Sri Lanka's military expenditure is directly linked with the conflict. If lasting peace is achieved then there will be opportunities to focus on the much needed areas such as tackling poverty reduction and achieving higher economic growth.

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