Govt. secures 75% of 2007 aid quantum

Jayasiri Munasinghe

COLOMBO: The Government has received more than 75 percent of foreign aid out of the Rs.100 billion anticipated for the year 2007 with the signing of agreements to receive Rs.72 billion within the first four months of the year.

State Revenue and Finance Minister Dr. Ranjith Siyambalapitiya told the Daily News that it was a great victory on the part of the Government to receive such amounts of foreign aid within such a short span of time amidst criticism from the Opposition ranks.

"This is a clear reply to the critics from the Opposition ranks who said the Government is facing severe difficulties when obtaining foreign aid", the Minister pointed out.

The Minister said out of the Rs. 72 billion, US $ 347 million has been provided by the Government of Japan. Apart from this the Asian Development Bank has also agreed to provide US $ 300 million for this year.

Many Foreign nations made pledges to assist Sri Lanka when President Mahinda Rajapaksa presented his ten year development plan under the Mahinda Chinthana programme during the Sri Lanka Development Forum held at the Light House hotel in Galle recently.

Poverty alleviation, drinking water supply projects and agricultural development projects are among the projects that have been identified for immediate implementation with foreign assistance.

"The US $ 300 million from the ADB will be utilised for the Colombo South Port Development project", Minister Siyambalapitiya said. Apart from Japan and the ADB, Spain (US $ 17 million), German (US 17 million), Austria (US $ 12 million) and UN (US $ 13 million) have signed agreements with the Ministry of Finance to extend their assistance to Sri Lanka.

Apart from the US 300 million, the ADB has also agreed to provide US $ 215 million on a priority basis.