Sri Lanka

60 million euros from EU for development projects

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The European Union will provide Sri Lanka a 60 million euros grant for the next five years for development projects in the country.

The grant will be provided under the European Union- support to District Development programme for the period 2012 - 2017, Head of Delegation of the European Union in Sri Lanka Bernard Savage announced during a meeting with the Minister of Economic Development Basil Rajapaksa at the Ministry yesterday.

Under this programme, the projects identified by the Sri Lankan government as priority projects will be implemented by United Nations agencies and IFC of the World Bank Group with European Union financial assistance.

The European Union plans to support two major components identified in line with the National Development Programme of Sri Lanka.

The grants will be utilized for poverty reduction and provision of basic infrastructure and services for vulnerable populations and to support local economic development.

Ambassador Savage said the EU will provide funds to complete the ongoing projects started with EU funds and it will provide financial assistance amounting to 60 million euros for the new projects to be started.

Minister Rajapaksa said that since most of the humanitarian development programs related to Tsunami and post conflict resettlement are completed or near completion the government will allocate foreign funds on the basis of country's overall economic strategy and national policy.

The Minister expressed his gratitude to the EU for the assistance it has rendered for the Humanitarian Development programs at various levels and the United Nations and its agencies for the long standing support extended to Sri Lanka.