The Hindu : International : Donors to discuss post-tsunami recovery

Online edition of India's National Newspaper
Monday, May 16, 2005

International

International

Donors to discuss post-tsunami recovery

V.S. Sambandan

KANDY: Sri Lanka's donors will start a two-day Development Forum meeting in Kandy on Monday to discuss post-tsunami reconstruction efforts, macro economic issues and the current state of the peace process.

During the meeting, to be inaugurated by President Chandrika Kumaratunga, an update on the peace process will be presented by the Director-General of the Secretariat for Co-ordinating the Peace Process, Jayantha Dhanapala. The meeting gains significance against the current economic and political backdrop.

The Central Bank has estimated the damage caused by the tsunami at $1 billion (4.9 per cent of the GDP) and the reconstruction cost, likely to be spread over three years, is estimated at around $1.8 billion. Disruptions in fisheries and tourism after the tsunami had resulted in a downward revision of the economic growth "by about 0.5 per cent to 1 per cent from the original estimate of 6 per cent," the Central Bank said.

On Saturday, the visiting Japanese Special envoy, Yasushi Akashi, said Sri Lanka was going through "a critical period in its political life." The island-nation's longest spell of ceasefire has been marred by continued killings, largely attributed to the internal split in the Liberation Tigers of Tamil Eelam (LTTE). "We should not be complacent about the state of affairs. A state of no-war does not mean we have peace," Mr. Akashi said.

Mr. Akashi struck a note of caution that the country was "still precariously placed in a grey zone, hoping for greater stability for all."

On the issue of a joint mechanism between the Government and the LTTE for post-tsunami reconstruction, Mr. Akashi said a failure to create such a body would be "a major blow" for the Sri Lankans. "The breakdown of negotiations or talks leading to the establishment of a joint mechanism will be a major blow to all concerned, particularly the Sri Lankan people who have every right to expect speedy delivery of aid," Mr. Akashi told a press conference in Colombo.

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