Iceland-Sri Lanka agreement on Development cooperation

THE Government of Iceland recognized Sri Lanka as a development partner in August 2004 and proposed to enter in to a General Agreement for development cooperation. Sri Lanka is the first Asian country to enter into a development cooperation agreement with lceland.

Development assistance of the lceland Government is channelled through its international cooperation arm: lcelandic International Development Agency (ICEIDA) and it is proposed to open an ICEIDA Resident Office in Sri Lanka.

In accordance with the Development Cooperation Agreement signed today the Government of Iceland will provide project aid, technical assistance and training for Sri Lanka. For the year 2005, Iceland has allocated Iceland Kroners 25 million (Rs. 40 million) for these activities. Immediately after the tsunami disaster.

Iceland pledged Iceland Kroners 85 million (Rs. 135 million) of which 50% is channelled through International agencies as humanitarian assistance and the balance 50% through ICEIDA for reconstruction of tsunami affected areas.

The General Agreement was signed on July 23 by Dr. P.B. Jayasundara Secretary, Ministry of Finance and Planning, on behalf of Government of Sri Lanka and Mr. Gunnar Snorri Gunnarsson, Permanent Secretary, Ministry of Foreign Affairs of the Government of Iceland who is leading an Icelandic delegation to Sri Lanka at present on behalf of Iceland.

The visiting Icelandic delegation comprised Director General of Icelandic International Development Agency, Chairman of ICEIDA Board, two Board members and a press officer.