Humanitarian Situation Report - Sri Lanka: 9 - 15 Sep 2005

Overall Situation

The Supreme Court rescheduled the hearing of the three Fundamental Rights applications against the Post-Tsunami Operational Management Structure (P-TOMS) agreement signed between the Government and the LTTE for November 22.

The Development Assistance Database (DAD) a web portal to enable easy-to-read online access to the assistance coming into Sri Lanka for tsunami recovery and to help to better coordinate and monitor post tsunami recovery aid, was launched on September 2. It can be accessed at www.dad.tafren.gov.lk

The Task Force for Rebuilding the Nation (TAFREN) is spearheading the online database with the support and funding from UNDP Colombo. TAFREN is leading the customization of the database to ensure that it is tailored to the specific context of post tsunami reconstruction needs in Sri Lanka.

It is designed to promote the allocation of assistance in line with priority national needs. DAD Sri Lanka is accessible to the world community over the internet, including ministries, local governments, donors, UN, NGO partners and the Sri Lankan public. DAD shows the allocation of aid by sector, district, donor and implementer. It includes projects from UN agencies, International Financial Institutions, bilateral donors, national and international NGOs and the private sector.

The Sri Lankan Tourism Board (SLTB) says it is on track for a record year in 2006 with arrivals growth set to return to double digits. An Australian spokesperson for the SLTB said consumer confidence was also likely to be boosted by the level of investment which has poured into Sri Lanka's tourism infrastructure since the tsunami and that recent refurbishments, the opening of new coastal properties, keen investment interest from big players in the international hospitality industry and a positive tourism outlook are all strong indicators that Sri Lanka is on track for a return to double-digit growth in tourist arrivals. Among the latest developments on the ground are: a brand-new luxury property -- Saffrons Beach Villa, scheduled to open on the south coast in December, the six-suite Apa Villa Thalpe near Galle reopened recently and construction had begun on the US$ 100 million 245-room Hyatt Regency Colombo which is scheduled for completion in December 2008.

The 2005 World Summit began in New York today and will go on till 16 September. Sri Lankan president, Chandrika Bandaranaike will also be in attendance.

Main challenges and response

Sri Lanka's progress in post tsunami recovery has been rated as slow according to a report in the Asian Development Bank Outlook (ADO) 2005 Update released last week. It cited political impediments to recovery as one of the reasons for slow progress. In an examination of the impact of the tsunami on poverty, ADO 2005 described two scenarios of recovery fast and slow. Under the fast-recovery scenario assumed to take 2-3 years in most of the countries, poverty caused by the tsunami would be eliminated by 2007 in all countries except Indonesia, where the additional number of poor would still be around 345,000 that year. If the recovery process took longer than 4 to 5 years (the slow-recovery scenario) the additional number of poor would be 1.1 million in 2007.

The IMF warned Sri Lanka that it is exceeding budget targets and urged tough measures to cut subsidies, especially on fuel, in order to salvage the economy. In a detailed report on the state of the island's economy the IMF said the government has overspent on subsidies while failing to collect expected tax revenues so far this year. The IMF also said Sri Lanka's central bank's decision to hike interest rates by a quarter percentage point on Tuesday in a bid to slow galloping inflation was insufficient. Forecast inflation is at 14 pct this year up from 7.9 pct last year and 2.6 pct in 2003. Economic growth was projected at 5.3 pct, down from 5.4 pct in 2004 and 6.0 pct in 2003. Sri Lanka's presidential elections are due between October 22 and November 21. The IMF said that managing the economy in the near-term will be a challenge and warned that the policy slippage experienced in 2004 must be avoided. However, the IMF noted that the tsunami had brought a respite to the economy by way of increased foreign aid and a freeze on some of its foreign debt and said monitoring aid flows and ensuring accountability in their use will be a key priority in mobilizing external financing for tsunami reconstruction. The medium-term outlook depends on Sri Lanka's ability to move toward fiscal consolidation, implement structural reforms and revive the peace process according to the IMF said.

The Muslim Council of Sri Lanka (MCSL) which comprises of 58 National Muslim Organizations in Sri Lanka met with the presidential candidate of the main opposition and presented issues of concern to the Muslim community. The group wants the buffer zone to be withdrawn immediately, establishment of a state organ or an authority especially designated to handle all rehabilitation and reconstruction work in tsunami-affected Muslim and Sinhala areas and Muslim tsunami victims and forcibly evicted Muslims of the north east together with all other victims of the tsunami to be treated as a special class or treated favorably for receiving land permits and grants in their home districts or adopted districts. Meanwhile the abolition of the P-TOMS agreement, major revisions of the ceasefire deal and the rejection of any self-governance or homeland concept are among the conditions in the agreement between presidential candidate Prime Minister Mahinda Rajapakse and the Jathika Hela Urumaya.

Health

A district-wide de-worming campaign is being conducted by IOM in cooperation with the Deputy Provincial Director for Health Services along with the Zonal Director of Education. IOM gathered children in schools and health clinics in both cleared and un-cleared areas of Mannar yesterday and gave them a single dose of medication, which will protect them from worms for up to a year at a cost of Rs.14 per child. Thirty-thousand children will benefit from this endeavor. The parasites cause anemia and dysentery, while serious cases result in malnutrition, stunting and delayed puberty. The de-worming campaign is supported by AUSAID and will be complemented with projects to promote better heath and hygiene.

A renowned Pakistani epidemiologist and researcher Prof. Aurangzed Hafi who has conducted an extensive survey on newly born babies in tsunami-affected areas says there is an increased risk of child retardation and urged health organisations like WHO and UNICEF to consider taking early action regarding the matter. To bring the situation under control some special immune enhancing and nutritional supplements should be developed and should be exclusively formulated according to the specified needs of the post disaster situation.

Water and sanitation

IOM and World Vision have signed a US$ 500,000 agreement to improve vital water and sanitation services for the tsunami-affected. Work has already begun in Ampara district in the east ahead of the onset of annual monsoon rains, which frequently cause floods and put pressure on existing drainage systems. The agreement covers a wide range of activities, such as the cleaning of wells, waste disposal, ensuring adequate drainage at transitional housing sites and the construction of water and sanitation systems for temporary schools and health centres. With an estimated 80 per cent of Sri Lankan children suffering some form of diarrhoeal disease yearly, the project also includes components to help educate displaced people about healthy hygiene habits.