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Government, World Bank sign Gemi Diriya Agreement

Supporting the Government's efforts to address needs of the poorest of the poor communities in Sri Lanka, the World Bank yesterday signed the agreement for providing a grant for US$ 51 million for the community development and livelihood improvement Gemi Diriya project.

Gemi Diriya is designed to empower the poor and help them build a sense of community control. The program builds upon lessons learned during the Village Self-Help Learning Initiative (VSHLI), a four-year pilot financed by the World Bank, and other similar initiatives, which tested the transfer of decision-making power and funds to communities.

The pilot's main lesson was that communities know best about their needs, strengths, and weaknesses; their vision; and their constraints.

The pilot also showed that given an opportunity, poor people are capable of managing their development effectively and transparently.

"There have been several adverse reports about this project in the media, but having looked into these issues, we continue to have full confidence in the leadership and management of the project," said Peter Harrold, World Bank Country Director for Sri Lanka.

"We fully expect that rapid implementation of this program will justify this confidence and demonstrate the benefit of this program for the poorest of the poor in Sri Lanka."

The grant provided by the International Development Association, the World Bank's concessionary arm, finances the first phase of a proposed three-phase program which will ultimately cover between 4,000 and 5,000 village communities throughout the country over 12 years.

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