Germany grants euro 49 m for reconstruction

The Government of the Federal Republic of Germany will provide a euro 49 million grant (Approximately Rs.5.9 billion) for post Tsunami rehabilitation and reconstruction in Sri Lanka. The grant is provided by the KfW, the German Reconstruction Bank on behalf of the German Government, the Finance Ministry said yesterday.

The grant will be used for housing, water supply and sanitation and infrastructure related to new settlements.

The funds allocated for the housing sector will be used for the reconstruction of damaged houses in Batticaloa and Ampara districts under the owner constructed housing programme.

Infrastructure for new settlements in Batticaloa District will be reconstructed including the construction of a new water supply scheme in Valaichchenai. The funds will also be used for rehabilitation and reconstruction of water supply schemes in Galle District. In addition, funds have been allocated for consultancy and technical assistance required for the implementation of these programmes.

The German Government has also offered one year deferment of euro 13 million (Approximately Rs.1.6 billion) debts due to be paid by Sri Lanka in this year.

The Financial Cooperation Agreement for the grant was signed yesterday at the Ministry of Finance and Planning.

Treasury Secretary Dr. P.B. Jayasundera signed the agreement on behalf of the Government of Sri Lanka and Ambassador Juergen Weerth signed on behalf of the German Government.

Meanwhile, the United States on Monday signed an agreement to provide US$ 75 million for post-tsunami reconstruction in Sri Lanka.