'Govt's tsunami recovery process impressive'

Manjula Fernando

COLOMBO: Despite major set backs due to the escalating oil prices and troubles in the peace front the Government has done a 'good job' with regard to the tsunami recovery process and had set impressive goals under the Mahinda Chinthana national development plan, a visiting Japanese Aid delegation observed yesterday.

Japanese Finance Ministry's Development Finance Division Director Naoko Ishii said they were 'quite happy with the government's economic management after tsunami' despite the country had to endure another election, while at the same time struggling with international oil prices and a faltering peace process.

Wrapping up their two-day mission here the team held a press conference at the Japanese Embassy in Colombo yesterday.

The Japanese delegation comprising top representatives from the Ministries of Foreign Affairs, the Finance and Economy, Trade and Industry and the Japan Bank for International Cooperation were here to meet their counterparts in line with their bi-annual consultative meetings to review the progress of their ongoing projects. She said the country performed well in terms of tax collection during the past two years, a factor attributed to the revisions introduced by the State.

This was against the poor performance experienced in the previous years.

Director of the Loan Aid division of the Ministry of Foreign Affairs' Economic Cooperation Bureau Koichi Aiboshi responding to questions said it was premature to comment on the government's national action plan saying however they feel the draft was a very important blue print for the country's development.

The Japanese assistance component for this year will also be based on the studies and deliberations the team had with the Treasury officials during this visit and will be announced their next visit scheduled around September.

The parameters for their aid policy include the country's macro economic situation, the medium term budget, achievements in the State banking sector, Ms.Ishii said. Adding that they have reasons to be satisfied with the achievements in the State banking sector particularly with the People's Bank's performance followed by stringent supervision and system management introduced by the Government which resulted in an impressive decline in the Non Performing Loans, she said they will be closely monitoring the country's economic progress.

The Japanese government has pledged Rs. 19.4 billion under its Official Development Assistance (ODA) loan scheme to support development projects of the country after the tsunami.

This 37th loan package by Japan funds 1st phase of Galle Port Development Project, Pro-poor Eastern Infrastructure Development Project and Tourism Resources Improvement Project.

Nearly Rs.13.75 billion is allocated for the Galle Port Project which will include construction of a breakwater and a multipurpose terminal, Dredging of the Approach Channel and Turning basin and Procurement and Installation of Auxiliary Equipment and Navigation Aid required for modern port facilities.

The second loan of Rs.3.950 billion will be used to rehabilitate part of the main highway in the eastern province, a length of 98 kilometres between Akkaraipattu and Trikkandimadu including a new Kalladi bridge. The third component of Rs.2.32 billion will consume improvements projected in the tourism sector which involves tourism sites in Colombo, Kandy, Negombo, Sigiriya, Anuradhapura and Nuwara Eliya.