Sri Lanka has achieved impressive GDP growth - US Ambassador

GALLE: Excerpts from U.S. Ambassador Robert Blake's statement at the Sri Lanka Development Forum - 2007 in Galle. "At the out set. Mr. President, let me congratulate you on the formation of your new Cabinet and many of whom are here today I think and let me tell you that United States look forward to working with you and all of your colleagues to advance our ambitious joint agenda.

As a representative of one of the four Co-Chair nations, I welcome the efforts by the Government, of Sri Lanka, under the leadership of President Rajapaksa, to consult with all donors in Sri Lanka to formulate the content and approach not only to this important forum but to your 10-year-plan and consider the friendly advice all of us will provide over the next two days.

The United States and Sri Lanka have long been friends and strong allies. The US remains deeply committed to continue our assistance to Sri Lanka to enhance economic development, help Sri Lanka recover from the tsunami, and work with Sri Lanka on a durable solution to the ethnic conflict that has held back the progress of your nation for more than two decades.

The United States, like Sri Lanka is engaged in a sustained struggle against terrorism. We are a strong supporter in assisting Sri Lanka combat terror by helping to stop the financing and flow of arms to the LTTE, by providing law enforcement assistance, and by providing training and equipment to help the Sri Lankan Military to defend itself.

Mr. President, the development partnership between the U.S. and Sri Lanka goes back more than a half a century. Since 1956, the United States has provided nearly $2 billion in development assistance to Sri Lanka, including $134 million to help your country recover from the 2004 tsunami.

Over the last five decades, the US Agency for International Development (USAID) has assisted in the development of Sri Lanka in many different ways. Early programme focused on health and nutrition for children, provision of infrastructure such as construction of highways and railways, introduction of new agricultural technology and strategies.

Today USAID is also undertaking several long-term tsunami reconstruction projects, including construction of a new bridge over Arugam Bay, the upgrade of three damaged fishing harbours and construction of ten vocational education schools to help provide skills for a growing work force.

No amount of development assistance by the United States or any other donor can have any lasting impact, however, without finding a permanent solution to the conflict that has plagued Sri Lanka for more than 25 years.

We remain unwavering in our conviction that there can be no military solution to this terrible conflict. Mr. President, we applaud your efforts to forge a strong legislative majority that will support a credible power-sharing proposal that can form the basics for sustained, substantive negotiations between the Government and the LTTE.

It is clear that while Sri Lanka has achieved impressive GDP growth over the last two years despite such challenges as the tsunami and higher oil prices, the conflict has had a high cost for the Sri Lankan economy and the Sri Lankan people.

The negative consequences of continued conflict include direct costs such as the higher military and relief expenditures that are required that might otherwise have gone to more productive uses, and the infrastructure that must be replaced.

There are also high indirect costs such as income lost from forgone public investment, reduced tourist arrivals, reduced foreign direct investment, and the high costs of supporting internally displaced people.

The Western Province continues to prosper while most of the North and East have suffered the consequences of continued fighting. As many as 200,000 people have been displaced in the last 12 months, and the UN estimates that twice that number could eventually become homeless if hostilities continue.

Rather than working to help the country to develop, aid agencies are obliged instead to respond to the humanitarian needs, complications that hurts long-term development assistance among the various regions of Sri Lanka.

The deep U.S. commitment to the people and State of Sri Lanka brings about an equally deep concern for the difficulties faced by some of our implementing partners in their attempt to implement our assistance programs. All of America's development assistance and tsunami relief is implemented through our NGO partners.

Yet these NGO partners have faced difficulties that have hampered their ability to carry out their important work. Transparency, good governance, and respect for human rights and the rule of law are essential preconditions for economic development and indispensable prerequisites for laying the basis for a lasting peace.

The United States appreciates the positives steps taken by your Government to address some of the most vexing issues associated with the conflict, especially the formation of the Consultative Committee on Humanitarian Affairs and the active participation by the Disaster Management and Human Rights Minister and the Secretary of Defence.

This committee is making productive strides to address many of these important issues relating to humanitarian access and human rights and all of Sri Lanka's donor partners hope this valuable dialogue can continue.

In conclusion, let me say that United States attaches great importance to our partnership with Sri Lanka. We hope Sri Lanka will seize the opportunity to forge a power-sharing proposal that can form the basis for talks with the LTTE that could finally bring an end to conflict in Sri Lanka.

Peace would invite new investment, accelerate the return of some of Sri Lanka's best and brightest from abroad, and create a virtuous cycle of peace and prosperity.

If the peace dividend can be seized, Sri Lanka will prosper in this new century and can serve as a beacon of democracy for others in the region and beyond. The American people, steadfast friends of Sri Lanka, stand ready and willing to help you realise that goal.