A student from an Eastern village

Washington DC -- The World Bank’s new Vice President for South Asia, Isabel Guerrero, wrapped up her first visit to Sri Lanka this week with a strong re-affirmation of her institution’s commitment to expand economic opportunities for all Sri Lankans and to reach those excluded by poverty and conflict.

"Sri Lanka clearly has so much potential which is being held back by conflict," said Ms Guerrero in a statement issued by the Bank. "I was really impressed to see that our new strategy to assist the nation’s development has broad-based support built on consultations we carried out across the island. It is so important for all Sri Lankans to have a stake in the island’s growth."

The Country Assistance Strategy proposes US$900 million in lending to Sri Lanka over the next four years. It focuses on improving connectivity through infrastructure, especially roads and irrigation, to spread economic opportunity across this small but divided nation, some parts of which have been battered by decades of conflict.

Ms Guerrero noted Sri Lanka’s achievements in fighting poverty, adding that the strategy supports the expansion of that achievement in poor and underserved areas, including the conflict-affected northern and eastern parts of the country.

During her visit, Guerrero, who until June was the World Bank’s director in charge of the World Bank’s large India program, met with President Mahinda Rajapaksa and his advisors, with several members of the Cabinet, with the Governor of the Central Bank, Nivard Cabraal, and with officials from the Finance Ministry. She also met donors to the country’s development program and heard from civil society and the private sector about the challenges they face.

One critical aspect of the Bank’s assistance strategy is to help Sri Lanka improve its investment climate and boost its competitiveness to attract greater private sector investment. "It is extremely difficult to work in areas affected by conflict but we have succeeded in part, for example, with the rehabilitation of irrigation infrastructure that has enabled some farmers in these areas to return to the land," said Ms Guerrero.

The Bank will not shy away from the huge needs of Sri Lankans in these areas, she said. Key to this was the Bank’s emphasis on enhancing the quality of services and the accountability for those services in areas like education, health, and social safety nets.

The north and east of the country have been most severely affected by the last quarter century of fighting and displacements. The Bank strategy emphasizes efforts to improve access to public services and enhance livelihood opportunities in conflict affected areas, said Guerrero.

The Bank will also make every effort to minimize risks of inadvertently fuel tensions through inclusive consultations and genuine grievance mechanisms. Sensitivity to the causes of conflict is critical. For example, support to education focused on English as a link language working towards mixed Tamil-Sinhala schooling which could bring communities closer together. Continuing to work on projects driven by communities themselves and by local governments is another way to ensure that the needs of the people are addressed directly.

Since becoming World Bank Vice President for the South Asia Region in July, Ms Guerrero has also visited Afghanistan, Bangladesh, India, Nepal and Pakistan, the statement said.