World Bank commends Lanka's tsunami relief mechanism

by Manjula Fernando

World Bank Chief James Wolfensohn has commended the Sri Lankan tsunami aid distribution mechanism and the use of State banks' network to disperse tsunami grants as an example to others, at the 2005 WB/IMF's spring meeting which concluded in Washington recently.

Attended by the WB and IMF regional heads, donor nation representatives and recipient country finance ministers, the 24th development committee meeting was held from April 18 to 20.

The Government made arrangements to pay an initial Rs. 5,000 to each of the 236,000 families who lost their livelihoods due to the tsunami, through the State banks (Bank of Ceylon and People's Bank).

The payment has been made since January up to date. Wolfensohn has specifically commended this mechanism adding that this new example set by Sri Lanka can be adopted for other World Bank funded projects.

Finance Minister Dr. Sarath Amunugama who led the Sri Lankan delegation, briefed Wolfensohn on the country's overall strategy on implementing tsunami relief and reconstruction projects funded by the international donor community and the progress of the on-going projects.

Plans for the mid-May Sri Lankan Aid Group Meeting in Kandy were also discussed. Congratulating the Minister on Sri Lanka's effective handling and successful completion of the tsunami relief phase, IMF Deputy Managing Director Takatoshi Kato has pledged continued assistance to Sri Lanka for gaining economic stability and growth.

After the December 26 tsunami which devastated two thirds of the country's coastal stretch, the World Bank immediately responded by pledging US $ 156 million under its Emergency Natural Disaster Funding scheme.

On the sidelines of the meeting, the Minister met Indian Finance Minister P. Chidambaram where they held extensive talks on further strengthening Indo-Sri Lanka economic cooperation. The Indian counterpart has indicated that he would help expedite on going policy discussions .

He also held discussions with German Deputy Finance Secretary Caio Koch-Weser and Japanese Deputy Finance Minister Hiroshi Watanabe during his stay in Washington where they pledged further assistance for tsunami reconstruction plans of the government.

He was accompanied by Central Bank Governor Sunil Mendis.

The Minister will return this morning, ending his two-week official tour.