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Sri Lankan official stresses resettlement

— Photo: K.V. Srinivasan

Ajith Nivard Cabraal.

CHENNAI: It will be difficult for the Sri Lankan government to engage in a constructive dialogue on a political solution until the resettlement issue has been dealt with, according to Ajith Nivard Cabraal, governor of the Central Bank of Sri Lanka.

“Otherwise, this becomes the only topic of discussion. Before you start talking about anything else, the first topic is, ‘How long will the resettlement take?,’” said Mr. Cabraal, in an interview with The Hindu on Thursday.

“It is hard to think those in welfare camps will be too keen to discuss a political solution before they get settled…To engage in a constructive dialogue, it is best to get this out of the way.”

Of the 2.6 lakh internally-displaced Tamils, over one lakh have been resettled, he said, still leaving about 1.5 lakh in welfare camps. He is confident that the Sri Lankan government will be able to fulfil its promise of resettling 80 to 90 per cent of the refugees by the end of the year. This is apart from the Tamils who fled the country, including the one lakh refugees in India, and may also start returning home.

The biggest challenge the resettlement drive faces is landmines. “People think [the resettlement] can happen overnight, but it cannot. If they go back to a place where there are still mines, and people get injured, it will be another huge problem,” said Mr. Cabraal. People are being sent back in batches, so that entire communities can be resettled, with schools, hospitals, roads and electricity in place. “So far, all the resettlement has happened with U.N. endorsement and that means it must meet certain minimum standards.”

From a kit of cooking utensils to reviving livelihoods, the government is hoping to meet the needs of refugees.

The government has estimated that $1.5 billion per year must be spent in the northern province reconstruction process, although Mr. Cabraal declined to pinpoint the government’s contribution.

The major areas for investment include, the railways, roads, electricity, building schools, hospitals, police stations and government buildings, mega private development, and encouraging entrepreneurship and restoring the financial system, he said.

In order to encourage restoration of livelihoods, the Central Bank has set aside $2 billion for quick loans. About 1,000 loans have already been distributed by banks in the province, and private banks are being encouraged to set up branches there.

Indian investors could focus on construction, infrastructure and railways. With tourism expected to resurge now that the conflict had ended, Indian players were expected to invest in building tourism infrastructure in the northern province. Another major area of interest could be education, especially technical. Setting up BPOs in the northern province could help generate jobs there.

The Sri Lankan economy was affected by the global financial crisis, with the gross domestic product growth rate falling from 6.5 per cent last year to 3.5 per cent this year. Next year, Mr. Cabraal feels, the resurgent post-war economy will return to a 6.5 per cent rate and catch up with India’s growth rates in a few years. Within five years, he hopes that the national per capita income will double to $4000 per year.

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