Washington Seminar in advance of the Tokyo Conference on Sri Lankas Reconstruction and Development

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Washington Seminar in advance of the Tokyo
Conference on Sri Lankas Reconstruction and
Development

• Peter Harrold
• Country Director for
• Sri Lanka
• World Bank
• Washington,
• April 14, 2003

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Sri Lankas Need for Financial Support in 4 Areas

• For the implementation of Regaining Sri Lanka,
  the Poverty Reduction Strategy
  
• Support for the reconstruction of the North East
  and restoration of public services, based on
  Needs Assessment
  
• Incremental support for 4 Districts adjoining the
  North East
  
• Special Needs of the South (still under
  preparation by GoSL

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Regaining Sri Lanka

• Accelerating growth for poverty reduction via
• Building a supportive macro environment
• Reducing conflict related poverty
• Creating opportunities for pro-poor growth
• Investing in human resources
• Empowering the poor and strengthening governance
• Implementing an effective ME system

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Financing Needs for Regaining Sri Lanka

• To finance costs of reform, restoration of
  public services in unserved areas and
  improvements in poverty-related arrangements.
  

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Official Financing Needs for Regaining Sri Lanka
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Regaining Sri Lanka c.f. The Recent Past

• Average annual financing requirement for
  Regaining Sri Lanka is 1.1 billion per annum
  
• If donor indications are confirmed, 2003 is
  financed, but growing financing gap from 2004
  
• This compares with average financing of 650-750
  million in recent years, so a significant
  increment

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Needs Assessment of the North and East and Border
Districts

• This is an assessment of perceived needs, not a
  development plan or a project/program preparation
  exercise.
  
• It assesses the needs of the areas and
  populations most affected by conflict. It is not
  aid donor or aid agency oriented. No executing
  agencies are suggested.
• Detailed program/project elaboration will need to
  follow later
  
• It was overseen by ADB, the UN and World Bank
• Find it at www.peaceinsrilanka.com

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(No Transcript)
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Sectoral Coverage and Lead Responsibilities
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Estimated Needs for the North East in Immediate,
Medium and Longer Term (US mn)
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Estimated Needs for the North East in Immediate,
Medium and Longer Term

• About 200-250 million per annum appears to be
  the basic requirement
  
• A significant proportion of this will have to be
  in the form of grants if debt ceilings are to be
  respected
  
• Much work remains to be done on prioritization
  and on implementation arrangements and improving
  capacity
  
• NERF is now operational

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Additional Needs of the 4 Border Districts
Affected by the Conflict

• The needs of the 4 Districts have been valued
  at
  
• Short term 50 million
• 5-7 years 113 million
• Longer term 146 million
• These have been taken account of to some extent
  in Regaining Sri Lanka
  
• About 20 million per annum in additional
  expenditures for these Districts seems to be
  needed

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Summary of Sri Lankas Estimated Financial
Support Needs

• For Regaining Sri Lanka 1.1 billion pa
• For Reconstruction and Restoration of services in
  the North-East 225 million pa
  
• For the 4 Districts bordering the NE and affected
  by conflict 20 million pa
  
• Special needs of the South t.b.d.